Sales volume variance
In one sentenceThe effect of selling a number of units different from the number estimated in the budget, valued at the estimated price or at the standard contribution margin per unit.
Simply put
This variance isolates the effect of quantity alone: how much sales changed because you sold more or fewer units than planned, assuming the price stayed as you estimated.
Some references value it at the estimated selling price, showing its effect on revenue, and others at the standard contribution margin, showing its effect on profit, because every unit not sold also saved its variable cost. Choose the method you use and stick to it.
Worked example
A confectionery factory estimated selling 1,200 boxes at 100 SAR but sold only 1,000 boxes. The standard variable cost per box is 50 SAR, so its contribution margin is 50 SAR.
Actual quantity − Estimated quantity1,000 − 1,200 = −200 boxes
At the estimated price: −200 × 100−20,000 SAR (effect on revenue)
At the contribution margin: −200 × 50−10,000 SAR (effect on profit)
Sales volume variance at the estimated price20,000 SAR unfavorable
Formula: (Quantity actually sold − Estimated quantity) × Estimated selling price (or standard contribution margin per unit)
Don't confuse it with
Sales price varianceIt measures the effect of a price change on the actual quantity, not the effect of a quantity change.