Hey guys! I need your help regarding price Impact, volume impact and mix impact.
I’m currently working on a case study where I need to calculate and explain these three impacts by analyzing a logistic’s company budget and actual rates…
But I honestly have no clue what these three impacts are and how to tackle them. Any help is appreciated.
In: Mathematics
Price Impact is what would the Revenue have been if the Volumes were what was in Budget but the prices were the actual price.
Volume impact is what the revenue would have been if the Price was the budget level but the Volumes were actual.
Mix is what the revenue would have been if the various items you sold were at teh budget level and not the actual.
So
Price Impact = Budget Volume x (Price Actual – Price Budget)
Volume Impact = Price Budget x (Volume actual – Volume Budget)
Mix impact isn’t a simple formula and in the real world tends to be a balancing number so Price + Volume +Mix = actual total revenue variance
Latest Answers