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OleMash [197]
3 years ago
15

Pricing Strategy, Sales Variances Eastman, Inc., manufactures and sells three products: R, S, and T. In January, Eastman, Inc.,

budgeted sales of the following. Budgeted Volume Budgeted Price Product R 125,900 $26 Product S 156,500 22 Product T 22,500 21 At the end of the year, actual sales revenue for Product R and Product S was $3,220,000 and $3,358,000, respectively. The actual price charged for Product R was $25 and for Product S was $20. Only $11 was charged for Product T to encourage more consumers to buy it, and actual sales revenue equaled $645,150 for this product. Required: 1. Calculate the sales price and sales volume variances for each of the three products based on the original budget. Sales price variance Sales volume variance Product R $ $ Product S $ $ Product T $ $ 2. Suppose that Product T is a new product just introduced during the year. What pricing strategy is Eastman, Inc., following for this product? Check My Work
Business
1 answer:
deff fn [24]3 years ago
6 0

Answer:

Check the explanation

Explanation:

Sales price variance = (Actual price - Budgeted price) * Actual units sold

Product R : ($25 - $26) * 123000 = $123000 unfavorable

Product S:($20 - $22) * 162700 = $325400 unfavorable

Product T: ($10 - $20) * 54000 = $540000 unfavorable

Sales volume variance = (Actual units - Budgeted units) * Standard price

Product R : (120000 - 123000) * 26 = $78000 favorable

Product S:(150000 - 162700) * 22 = $279400 favorable

Product T: (20000 - 54000) * 20 = $680000 favorable

Notes:

Actual units:

Product R = $3075000/ $25 = 123000

Product S = $3254000/$20 = 162700

Product T = $540000/$10 = 54000 units

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DanielleElmas [232]

Answer:

Market rate of return on stock = 11.2152%

Explanation:

Details provided are

Market rate per share = $27.21

Dividend to be paid at year end = $1.80

Expected dividend growth rate = 4.6%

Expected return of market has to be calculated.

Using the dividend growth model we have,

Price\ of\ share\ = \frac{Dividend\ at\ year\ end}{Market\ return\ - Growth\ rate}

27.21 = \frac{1.80}{Rm - 4.6}

Market return - growth = \frac{1.8}{27.21} = 6.6152

Market return = 6.6152 + 4.6 = 11.2152%

Market rate of return on stock = 11.2152%

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3 years ago
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2 years ago
When forecasting balance sheet financials, an unusually high forecasted cash balance suggests which of the following? A. Sales a
Inga [223]

Answer:

The correct option is E

Explanation:

If the business is forecasting the financials of the balance sheet and mostly the high forecasted balance of cash implies that the company or the firm could pay off the debt in the next or the following year.

The forecasted high cash balance most likely decrease the long term and the short term debt of the company in order to reduce the cash levels to a consistent level.

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Answer:

b c d f

Explanation:

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For a price-taking firm, marginal revenue Select one: a. is the addition to total revenue from producing one more unit of output
Ksju [112]

Answer: Option (e) is correct.

Explanation:

Correct Option: both a and c

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3 years ago
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