KSO budgeted to sell 10,000 units of a new product during 20X0. The budgeted sales price was $10 per unit, and the variable cost $3 per unit.
Although actual sales in 20X0 were 10,000 units and variable costs of sales were $30,000, sales revenue was only $5 per unit. With the benefit of hindsight, it is realised that the budgeted sales price of $10 was hopelessly optimistic, and a price of $4.50 per unit would have been much more realistic.

Required

Calculate planning and operational variances.