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What is sales volume variance?

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Scott Sherrill
President and Founder
Posted on Sept. 4, 2010
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Sales volume variance is the difference between the expected quantity of units to be sold and the actual quantity of units that are sold. Then, the value is multiplied by the unit's profit margin. For instance, if XY Corp. sold 200 more units of shampoo than it initially predicted, coupled with a profit per unit (margin) of $3, the sales volume variance would be $600 (200 shampoo units x $3 per unit).

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