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Sales variance analysis in Excel
Sales volume variance is the variance arising from the difference in actual quantity sold compared to planned or budgeted quantity. Sales volume variance has two components; quantity and mix, each of which can be calculated separately as well. The difference in volume impacts both the profit amount as well as sales amount and therefore results in variance in both of these line items.

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Sales volume variance analysis
In this video we calculate Sales volume variance and the impact it has on the gross profit of a business. We work with an Excel file and compare actual and budget data (budget variance analysis) of a fruits selling company. The sales volume variance is calculated individually for each product, and then the total is matched with the total variance. The relationship between price, volume and total sales variance is also understood.

Profitability analysis
We also learn that when calculating sales volume variance, we should use budgeted profit when trying to explain the variance in profit, and use selling price when trying to explain the variance in sales.

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