Marathon sports equipment company projected sales of 79 comma 000 units at a unit sales price of $ 14 for the year. actual sales for the year were 77 comma 000 units at $ 15 per unit. variable costs were budgeted at $ 3 per unit, and the actual amount was $ 4 per unit. budgeted fixed costs totaled $ 376 comma 000, while actual fixed costs amounted to $ 420 comma 000. what is the sales volume variance for total revenue?

$26,000

Explanation:

The Sales volume variance can be calculated using the following formula:

Sales Volume Variance = Actual Sales ($) - Budgeted Sales ($)

Or you can also use the following formula:

Sales Volume Variance = (Actual Sales Units - Budgeted Sales Units) * Budgeted price per unit

Here

Actual Sales ($) is 77000 unit at $14 budgeted sales price per unit which means total sales in dollars was $1,078,000.

Budgeted Sales ($) is 79000 unit at $14 budgeted sales price per unit which means total budgeted sales in dollars was $1,104,000.

Sales Volume Variance = $1,078,000 - $1,104,000 = $26,000

ROI = Operating income / Total Assets

It is obvious that ROI is inversely proportional to the total assets at constant income.

Therefore,  if selling and administrative expenses decrease while everything else remains the same, the ROI will increase.