The difference between the amount of money a business expects to sell its products or services for and the amount of money it actually sells its products or services for. Sales price variance means that a business will be more or less profitable than it anticipates over a given time period. As a result, sales price variances are said to be either "favorable" or "unfavorable."

Sale price variance = (actual selling price - anticipated price) * # units sold

Let's say a clothing store has 50 shirts that it expects to sell for $20 each, which would bring in $1,000. Unfortunately, the shirts are sitting on the shelves and are not selling, so the store has to discount them to $15. It does sell all 50 shirts at the $15 price, bringing in $750. The store's sales price variance is $1,000 minus $750, or $250, and the store will earn less profit than it expected to.

onlinelibrary.wiley.com [PDF]

… the ﬁrst to propose that prices may contain a drift term that would allow the second sale prices to drift … Revisions in Repeat-Sales Price Indexes: Here Today, Gone Tomorrow … Therefore, the large constant terms in Table 1 suggest that the weighted repeat sales (WRS) model is …

onlinelibrary.wiley.com [PDF]

… the ﬁrst to propose that prices may contain a drift term that would allow the second sale prices to drift … Revisions in Repeat-Sales Price Indexes: Here Today, Gone Tomorrow … Therefore, the large constant terms in Table 1 suggest that the weighted repeat sales (WRS) model is …

www.jstor.org [PDF]

… the ﬁrst to propose that prices may contain a drift term that would allow the second sale prices to drift … Revisions in Repeat-Sales Price Indexes: Here Today, Gone Tomorrow … Therefore, the large constant terms in Table 1 suggest that the weighted repeat sales (WRS) model is …

books.google.com [PDF]

… the ﬁrst to propose that prices may contain a drift term that would allow the second sale prices to drift … Revisions in Repeat-Sales Price Indexes: Here Today, Gone Tomorrow … Therefore, the large constant terms in Table 1 suggest that the weighted repeat sales (WRS) model is …

www.sciencedirect.com [PDF]

… the ﬁrst to propose that prices may contain a drift term that would allow the second sale prices to drift … Revisions in Repeat-Sales Price Indexes: Here Today, Gone Tomorrow … Therefore, the large constant terms in Table 1 suggest that the weighted repeat sales (WRS) model is …

onlinelibrary.wiley.com [PDF]

… the ﬁrst to propose that prices may contain a drift term that would allow the second sale prices to drift … Revisions in Repeat-Sales Price Indexes: Here Today, Gone Tomorrow … Therefore, the large constant terms in Table 1 suggest that the weighted repeat sales (WRS) model is …

www.jstor.org [PDF]

… the ﬁrst to propose that prices may contain a drift term that would allow the second sale prices to drift … Revisions in Repeat-Sales Price Indexes: Here Today, Gone Tomorrow … Therefore, the large constant terms in Table 1 suggest that the weighted repeat sales (WRS) model is …

www.sciencedirect.com [PDF]

… the ﬁrst to propose that prices may contain a drift term that would allow the second sale prices to drift … Revisions in Repeat-Sales Price Indexes: Here Today, Gone Tomorrow … Therefore, the large constant terms in Table 1 suggest that the weighted repeat sales (WRS) model is …

link.springer.com [PDF]

… the ﬁrst to propose that prices may contain a drift term that would allow the second sale prices to drift … Revisions in Repeat-Sales Price Indexes: Here Today, Gone Tomorrow … Therefore, the large constant terms in Table 1 suggest that the weighted repeat sales (WRS) model is …

www.jstor.org [PDF]

… the ﬁrst to propose that prices may contain a drift term that would allow the second sale prices to drift … Revisions in Repeat-Sales Price Indexes: Here Today, Gone Tomorrow … Therefore, the large constant terms in Table 1 suggest that the weighted repeat sales (WRS) model is …

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You can calculate sales price variance by taking (actual selling price - anticipated selling price) * units sold.

Sales price variance is the difference between the amount of money a business expects to sell its products or services for and the amount of money it actually sells its products or services for. Sales volume variance is the difference between the actual number of units sold and anticipated number of units sold.

A business wants to have favorable sales price variances because it means that they will be more profitable than they had originally expected. Favorable variances mean that a company has been able to sell their product at a higher rate than they had originally planned, which means that they are making more profit than they had initially thought possible. This also means that customers are willing to pay more for your product, so this could be an indication that your product has increased in value over time. Unfavorable variances mean that you are not making as much profit as you had hoped, which may indicate that your product's value has decreased over time or customer interest in your product has waned significantly since you first began selling it. This could also indicate problems with pricing strategy or production costs associated with producing your particular good or service, so these issues should be addressed immediately if unfavorable variances continue to occur on a regular basis.

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