Total Variance
The total variance can thus be seen algebraically to be (minus $6) plus (plus $3), giving (minus $3). Or: -6+3=-3.
This result tells us that the negative effect of selling at a lower price was twice the positive effect of selling at a higher volume than planned. This might have occurred where prices were lowered to increase volume, but actual volume increases did not meet expectations, perhaps due to competitors also cutting their prices, or changes in customer preferences.
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