Soundsthatcantbemade, Inc. produces two versions of its music software – deluxe and professional. The professional version comes with some hardware for connecting instruments to computers and servers. The deluxe version is supposed to sell for $40 per package; the professional version is supposed to sell for $120 per package. Given that some discounts were offered, the actual average selling price was $38 per package and $115 per package for the deluxe and professional versions, respectively. The company had expected to sell 1,000 total copies of its software during the past month. Of these total copies, it was expected that 700 would be the deluxe version and 300 would be the professional version. At the end of the month, managers realized they sold 800 copies of the deluxe version and 400 copies of the professional version. The sales price variance is for the deluxe product and for the professional product.
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Soundsthatcantbemade, Inc. produces two versions of its music software – deluxe and professional. Th...
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