The sales price variance equals the difference between actual revenue and flexible budget
sales revenue. For Midwestern University, we have $4,674,000 – $6,150,000 = ($1,476,000) or
$1,476,000 U sales price variance.
Midwestern University’s total football profit variance of $324,000 F = $1,800,000 F
sales volume variance + $1,476,000 U sales price variance. This result occurs because actual
fixed and variable costs equaled budgeted fixed and variable costs (i.e., both the fixed cost
spending variance and the flexible budget variable cost variances = $0).