Edna's Chocolates had planned to sell chocolate-covered strawberries for $3.00 each. Due to various factors, the actual price was $2.75. Edna's was able to sell 1,000 more strawberries than the anticipated 4,000. What is (1) the quantity factor and (2) the price factor for sales?

A. $3,000

B. - $1,250

Explanation:

1. Quantity Factor

Mathematically, the quantity factor can be calculated as follows:

(Actual sales - Planned sales) * Planned sales price

From the values in the question, we identify the golly:

Actual sales = 4,000 + 1,000 = 5,000

Planned sales = 4,000

Planned sales price = $3

Quantity factor = (5,000-4,000) * $3 = $3,000

2. Price factor for sales

Mathematically, this can be calculated as:

Price factor for sales = (Actual selling price per unit - Planned selling price per unit) * Actual units sold

From the question, we can identify the values as follows:

Actual selling price per unit = $2.75

Planned selling price per unit = $3

Actual units sold = 5,000

Price factor for sales = (2.75-3) * 5,000 = - $ 1,250