Question 20.6: The actual price for a product was $48 per unit, while the p...

The actual price for a product was $48 per unit, while the planned price was $40 per unit. The volume increased by 5,000 units to 60,000 actual total units. Determine (a) the quantity factor and (b) the price factor for sales.

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a. $200,000 increase in sales (5,000 units × $40 per unit)
b. $480,000 increase in sales [($48 – $40) × 60,000 units]

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