Sales volume means sold quantity of goods. There are many purposes for calculating the sales volume, for example, we need sales volume for calculating the value of total sales, calculating the gross profit, sales volume variance and cost volume variances.
To calculate the sales volume is simple. For example, we are calculating the sales volume of one year. We have to record each day sales quantity. For example, we sell each day 100 units of our finished products. It means, we sell 3000 units in one month and 36000 units in one year. It may be estimation. But actual sold units may be different. For example first month sales may be 3500 units and second month sales may be 2800 units. On the actual record of sales units, we can calculate the total sales volume, it may be 40 units.
Sometime, we make the budget for example, we keep the standard of sales volume unit is 50000 units one year at the stand price of $ 10. If our annual actual sales volume is 40000 units. Difference will be 10000 units and sales volume variance will be $ 1,00,000. It is unfavorable because we did not achieve our targeted sales volume. There is big need to improve our sales promotion schemes. It will only possible if we know to calculate the sales volume. So, it is very very necessary to calculate sales volume as per above method.
If we have given the sales value and sales price, we can calculate the sales volume with following simple formula :
Sales Value = Sales Volume X Sales Price
Sales Value / Sales price = Sales volume