Vélos Recyclables is marketing a new

electric bike made entirely from recycled materials. Convinced of the success

of his model, the manager hopes to sell 200 of them at a price of €1,200 by

Christmas. By the end of December, he had sold 220 bikes but was forced to

offer average discounts of 20% to customers in the face of competition from Decathlon,

which launched its recyclable bike at the same time.

QUESTION17. What are the price and volume variances

for December sales?