The actual price for a product was 52 per unit while the pla

The actual price for a product was $52 per unit, while the planned price was $47 per unit. The volume increased by 3,880 to 56,140 total units. Determine the (a) the quantity factor and (b) the price factor for sales a. Quantity factor b. Price factor

Solution

working:

quantity factor = (planned sale - actual sale) * planned unit price

here,

the differece between planned sale and actual sale is directly given as 3,880 units.

=> quantity factor = 3,880 units * $47

=>$182,360.

Price factor

=> difference in prices * number of units sold

=>($52 - 47) * 56,140

=>$280,700.

a.quantity factor	$182,360	increase in sales
b.price factor	$280,700	increase in sales