The formula to calculate the Sales Quantity Variance is:
\[ SQV = BSV - ASV \]
Where:
Sales Quantity Variance (SQV) measures the difference between the budgeted sales volume and the actual sales volume. It helps in understanding how well the sales performance aligns with the budgeted expectations. A positive SQV indicates higher actual sales than budgeted, while a negative SQV indicates lower actual sales than budgeted.
Let's assume the following values:
Step 1: Calculate the Sales Quantity Variance using the formula:
\[ SQV = 1000 - 850 = 150 \]
The Sales Quantity Variance (SQV) is 150 units.