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What is the sales volume of V, of a particular product with a net income of $5000 given a sales price of $40, a variable cost of $15 and $1000 in fixed cost

 Dec 14, 2018
 #1
avatar+701 
0

Example of how to calculate sales volume. 

 

"Multiply the sales price by the expected sales volume to find the expected revenue." For example, if your company expected to sell 90,000 rubber ducks for $1 each, your expected revenue equals $90,000.

 

"Multiply the sales price by the actual sales volume to find the actual revenue." In this example, if your company ended up selling 100,000 rubber ducks, multiply 100,000 by $1 to find your actual revenue equals $100,000.

 

"Subtract your anticipated revenue from your actual revenue to find the sales volume variance." In this example, subtract $90,000 from $100,000 to find your sales volume variance equals $10,000. 

 

I think you meant that the expected revenue is $1000 + 40 + 15 = $1055, and the actual revenue is $5000. So your sales volume is $3045?

Or if it is the other way around, then you lose money (negative revenue). Revenue is $-3045.

 

I am not very sure about the information from your question. Sorry

 Dec 14, 2018
 #2
avatar+18455 
+1

Sales Volume = x

Sales price = 40      Income = 40* x      whre x = 'volume' ...or number of units sold

 

NET income = Income     MINUS     cost of goods sold

                     = 40 x             -     VARIABLE COST * x     -1000        

 

5000 = 40 x  - 15x   - 1000         

x= 240   units

 Dec 14, 2018

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