Differences between expected and actual sales revenues occur when either the actual quantity of units sold differs from the actual quantity and/or the actual mix of products sold differs from expectations. These two differences are represented and explained by the sales quantity variance (SQV) and the sales mix variance (SMV), respectively.

This case uses the performance of a college basketball team to provide a comprehensive discussion of sales variances in a unique setting. Using the number of shots made, total points scored, and the mix of shots made (based on the points awarded for each shot), the student will calculate the appropriate “sales” variances and evaluate the results. This distinctive scenario encourages students to apply knowledge as opposed to merely focusing on the formulas used in variance analysis, while providing an interesting and nontraditional context to engage college students who are oftentimes interested in their school's athletic programs.

The purpose...

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