Price , volume and mix variance

Storch123

New member
Joined
Nov 28, 2014
Messages
11
Hi,

could someone please talk me through calculating the price, mix and volume variance. i know how to get to the answer through a method but can't think it through:

Sales VolumePriceUnits
ProductActualBudgetVarianceActualBudgetVarianceActualBudget
ABC666061.101.20-0.106050
DEF5032181.000.800.205040
Total11692241.051.020.0311090
Thanks
 
I don't see "mix" or "volume" in your table.
Please post a CLEAR question.
Show an example if possible...we can't guess...

AND show the method you mention.

And clarify items...like, does "PRICE" mean purchase price or selling price?


sorry,
Sales Volume Selling PriceVolumeMix
ProductActualBudgetVarianceActualBudgetVarianceActualBudgetActualBudget
ABC666061.101.20-0.10605055%56%
DEF5032181.000.800.20504045%44%
Total11692241.051.020.0311090



and here are my variances:

Variance
PriceVolumeMixTotal
-6.013.3-1.36.0
10.07.10.918.0
4.020.4-0.424.0


Thanks
 
OK, looks good; like:
60 ABC's sold @ 1.10 each for total of 60*1.10 = 66 (in Actual sales)

So what's your question?

how to calculate the variances that i have shown above (price, mix and volume). i can follow a method to get the answers but I don't understand it mathematically.
 
Sorry, but completely unclear to me...

And you say you followed "a method"; WHAT method?
Show us HOW you arrived at your "variance recap".

sorry I've had a mare:

Actual Sales Selling PriceUnitsMix
ProductActualBudgetVarianceActualBudgetVarianceActualBudgetActualBudget
ABC666061.101.20-0.10605055%56%
DEF5032181.000.800.20504045%44%
Total11692241.051.020.0311090100%100%

below are my workings for the variances:

Variance
ProductPriceVolumeMixTotal
ABC-6.013.3-1.36.0
DEF10.07.10.918.0
Total4.020.4-0.424.0


i will show the calculations I've done to calculate the variance for product ABC:

Price: -0.10*60 = -6.0 (ABC Selling Price variance * ABC Actual volume)
Volume: ((110 * 56%)*1.20)-60 = 13.3 ((Total Actual Units * Budget ABC Mix)* Budget ABC Selling Price) - Budget ABC Actual Sales
Mix: ((66 - (56% * 110)) * 1.20 = -1.3 (( ABC Actual Sales - (Total Actual Units * Budget ABC Mix) * Budget ABC Selling Price

So i can follow this method through using the calculations above to calculate the variances but not really sure what is going on mathematically. was hoping someone could talk me through the calcs, if they are correct.
 
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