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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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8 0
3 years ago
Read 2 more answers
On February 1, a seller paid $1,140 in annual property tax for the current calendar year. He sold the house with the closing set
tigry1 [53]

Answer:

$288

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The seller is responsible for paying the property taxes during 3 months and 1 day, to find out the amount for that 1 day we divide the monthly tax by 30 = $3.17 per day.

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According to a study conducted by an​ organization, the proportion of americans who were afraid to fly in 2006 was 0.10. a rando
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This is not necessarily evidence that the proportion of Americans who are afraid to fly has  decreaseddecreased  because belowbelow  0.10 because the proportion of sample, is nothing very close to 0.10.

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3 years ago
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