# Sales Price Variance Definition.

Sales price variance is the amount by which the revenue from actual sales exceeds or falls short of the revenue that would have been generated if sales had occurred at the target price. In other words, it is the difference between the revenue generated by actual sales and the revenue that would have been generated if those sales had been made at the target price.

There are two main reasons why sales price variance can occur:

1. The mix of products sold may be different from what was originally planned. For example, if a company planned to sell 100 units of product A and 50 units of product B, but ended up selling 80 units of product A and 70 units of product B, then the sales mix variance would be +20 (80-100) for product A and +20 (70-50) for product B.

2. The price at which products are actually sold may be different from the target price. For example, if a company planned to sell 100 units of product A at a price of \$10 per unit, but ended up selling those 100 units at a price of \$9 per unit, then the sales price variance would be -\$100 (100*(\$10-\$9)).

Sales price variance can have a significant impact on a company's bottom line, and so it is important for managers to be aware of its potential causes and to take steps to minimize it. What is the formula of sale price? The sale price of a good or service is the price at which the seller is willing to sell it.

What is the formula of selling price with example? The formula for selling price is quite simple:

Selling Price = Cost of Goods + Profit

Let's say, for example, that you are a retailer who buys a widget from a manufacturer for \$10. You want to earn a profit of \$5 on each widget you sell, so you would set your selling price at \$15.

##### What are the 3 main sales variances?

There are three main types of sales variance: price, quantity, and mix.

Price variance is the difference between the actual selling price of a product and the expected selling price. Quantity variance is the difference between the actual number of units sold and the expected number of units sold. Mix variance is the difference between the actual mix of products sold and the expected mix of products sold. What is variance also called? Variance is also called variability, spread, or dispersion. What is the formula for sales price variance? In microeconomics, the sales price variance is the difference between the actual sales price and the expected sales price. The expected sales price is the price that would have been expected if the market conditions had been normal. The sales price variance is usually expressed as a percentage.

The sales price variance can be caused by many different factors, including changes in the demand for the product, changes in the supply of the product, changes in the price of substitutes or complementary products, and changes in the overall economic conditions.