Calculator Pricing Strategy, Sales Variances Eastman, Inc., manufactures and sells three products: R, S, and T....
Calculator
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 | 108,800 | $25 |
| Product S | 161,700 | 20 |
| Product T | 23,700 | 20 |
At the end of the year, actual sales revenue for Product R and Product S was $2,580,600 and $3,296,500, respectively. The actual price charged for Product R was $23 and for Product S was $19. Only $9 was charged for Product T to encourage more consumers to buy it, and actual sales revenue equaled $565,650 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?
Homework Answers
| Sales Price Variance | Sales Volume Variance | |
| Product R | 224400 UF | 85000F |
| Product S | 173500UF | 236000F |
| Product T | 691350 UF | 783000F |
Detail working for your easy understanding
| Sales Price Variance= (Actual price-Budgeted Price) X Actual Quantity Sold |
| Product R= (23-25)X 112200 =$224400 UF |
| Actual Quantity Sold= 2580600/23=112200 Unit |
| Product S= (19-20)X 173500 =$173500 UF |
| Actual Quantity Sold= 3296500/19=173500 Unit |
| Product T= (9-20)X 62850 =$691350 UF |
| Actual Quantity Sold= 565650/9=62850 Unit |
| Sales Volume Variance=( Actual Sales Quantity- Budgeted Sales Quantity)X Budgeted Price |
| Product R= ( 112200-108800)X25=$85000 F |
| Product S= ( 173500-161700)X20=$236000 F |
| Product R= ( 62850-23700)X20=$783000 F |
Part-2
Penetration pricing Policy to be followed for Product T
Add Answer to:
Calculator
Pricing Strategy, Sales Variances
Eastman, Inc., manufactures and sells three products: R, S, and
T....
Activity based costing and management Opsonin Inc manufactures three products for the pharmaceuticals industry . product P annual sales, 8000 units. product Q annual sales, 15 000 units. product R :...
Activity based costing and management
Opsonin Inc manufactures three products for the pharmaceuticals industry . product P annual sales, 8000 units. product Q annual sales, 15 000 units. product R : annual sales, 4000 units. The company uses a traditional, volume-based product costing system with manufacturing overhead applied on the basis of direct labour dollars. The product costs have been calculated as follows: Product P Product Q Product R $52.50 12.00 (0.6 hr x $20) 105.00 ($12x875%) Raw material Direct...
Elsworth Inc. manufactures and sells two fruit drinks: Kostor and Limba. Budgeted and actual results for...
Elsworth Inc. manufactures and sells two fruit drinks: Kostor and Limba. Budgeted and actual results for 2017 are as follows: (Click the icon to view the budgeted and actual results.) Read the requirements Requirement 1. Compute the total sales volume variance, the total sales-mix variance, and the total sales-quantity variance (Calculate all variances in terms of contribution margin.) Show results for each product in your computations, Begin by completing the following table to determine the budgeted contribution margin per unit,...
Jackson, Inc., manufactures two products that it sells to the same market. Excerpted below are its budgeted and actual operating results for the year just completed: Budget Actual Unit sales...
Jackson, Inc., manufactures two products that it sells to the same market. Excerpted below are its budgeted and actual operating results for the year just completed: Budget Actual Unit sales Product X 32,000 80,000 Product Y 80,500 42,000 Unit contribution margin Product X $ 4.80 $ 3.90 Product Y $ 13.00 $ 14.00 Unit selling price Product X $ 13.00 $ 14.00 Product Y $ 30.00 $ 29.00 Industry volume was estimated to be 1,400,000 units at the time the...
Task #2: Calculate the sales price and sales volume variances (Task #2 SV). Complete the yellow s...
Please help!
Task #2: Calculate the sales price and sales volume variances (Task #2 SV). Complete the yellow sections only. Write a briefum mary of the results of the analysis. Discuss both the sales price and the sales volume variance separately and then discuss the sales variances as a whole for each product line and in total. TASK # 2 High-End Litts, Inc. SALES VARIANCES December 31, Year 5 Budgeted (Standard) Price Budgeted (Standard) Volume Actual Price Actual Volume Premium...
Gigabyte, Inc. manufactures three products for the computer industry: Gismos (product G): annual sales, 8,000 units...
Gigabyte, Inc. manufactures three products for the computer
industry:
Gismos (product G): annual sales, 8,000 units
Thingamajigs (product T ): annual sales, 15,000 units
Whatchamacallits (product W ): annual sales, 4,000 units
The company uses a traditional, volume-based product-costing
system with manufacturing overhead applied on the basis of
direct-labor dollars. The product costs have been computed as
follows:
Product G
Product T
Product W
Raw material
$
35.00
$
52.50
$
17.50
Direct labor
16.00
(.8 hr. at $20)
12.00...
Gigabyte, Inc. manufactures three products for the computer industry: Gismos (product G): annual sales, 8,000 units...
Gigabyte, Inc. manufactures three products for the computer
industry:
Gismos (product G): annual sales, 8,000 units
Thingamajigs (product T ): annual sales, 15,000 units
Whatchamacallits (product W ): annual sales, 4,000 units
The company uses a traditional, volume-based product-costing
system with manufacturing overhead applied on the basis of
direct-labor dollars. The product costs have been computed as
follows:
Product G
Product T
Product W
Raw material
$
35.00
$
52.50
$
17.50
Direct labor
16.00
(.8 hr. at $20)
12.00...
Gigabyte, Inc. manufactures three products for the computer industry: Gismos (product G): annual sales, 8,000 units...
Gigabyte, Inc. manufactures three products for the computer industry: Gismos (product G): annual sales, 8,000 units Thingamajigs (product T): annual sales, 15,000 units Whatchamacallits (product W): annual sales, 4,000 units The company uses a traditional, volume-based product-costing system with manufacturing overhead applied on the basis of direct- labor dollars. The product costs have been computed as follows: Raw material Direct labor Manufacturing overhead* Total product cost Product G $ 35.00 16.00 (.8 hr. at $20) 140.00 $191.00 Product T $...
need help thanks Exercise 21-23 Computing and interpreting sales variances LO A1 Comp Wiz sells computers....
need help thanks
Exercise 21-23 Computing and interpreting sales variances LO A1 Comp Wiz sells computers. During May, it sold 400 computers at a $900 average price each. The Mayfwed budget included sales of 450 computers at an average price of $870 each ADActual Quantity SQ - Standard Quantity AP Actual Price SP Standard Price 162. Compute the sales price variance and the sales volume variance for May. Classify it as favorable or unfavorable (Indicate the effect of each variance...
1. 2. 3. Gigabyte, Inc. manufactures three products for the computer Industry: Gismos (product G): annual...
1.
2.
3.
Gigabyte, Inc. manufactures three products for the computer Industry: Gismos (product G): annual sales, 8,000 units Thingamajigs (product T): annual sales. 15,000 units Whatchamacallits (product W): annual sales, 4,000 units The company uses a traditional, volume-based product-costing system with manufacturing overhead applied on the basis of direct- labor dollars. The product costs have been computed as follows: Hav material Direct labor Nanufacturing overhead. Total product cost Product G $ 35.00 16.00 (.8 hr. at $20) 140.00 $191.00...
Problem 17-44 (Algo) Sales Mix and Quantity Variances (LO 17-4) Lake Cellars produces and sells white wine. The following data concern the three varietals of white wine the company currently offers. Sales data for August are given as follows. Sauvig
Problem 17-44 (Algo) Sales Mix and Quantity Variances (LO 17-4)Lake Cellars produces and sells white wine. The following data concern the three varietals of white wine the company currently offers. Sales data for August are given as follows. Sauvignon BlancChardonnayRieslingTotalBudgeted selling price$9.70$11.20$7.70Budgeted variable cost$7.15$8.45$6.05Budgeted selling quantity19,3007,30011,20037,800Actual selling price$9.90$7.30$8.30Actual variable cost$6.45$8.70$6.10Actual selling quantity20,9007,50011,00039,400 Required:a. Compute the sales price variance for all three wines. b. Compute the activity variance for Lake Cellars for August.c. Compute the mix and quantity variances for Lake Cellars for August.
Activity based costing and management
Opsonin Inc manufactures three products for the pharmaceuticals industry . product P annual sales, 8000 units. product Q annual sales, 15 000 units. product R : annual sales, 4000 units. The company uses a traditional, volume-based product costing system with manufacturing overhead applied on the basis of direct labour dollars. The product costs have been calculated as follows: Product P Product Q Product R $52.50 12.00 (0.6 hr x $20) 105.00 ($12x875%) Raw material Direct...
Elsworth Inc. manufactures and sells two fruit drinks: Kostor and Limba. Budgeted and actual results for 2017 are as follows: (Click the icon to view the budgeted and actual results.) Read the requirements Requirement 1. Compute the total sales volume variance, the total sales-mix variance, and the total sales-quantity variance (Calculate all variances in terms of contribution margin.) Show results for each product in your computations, Begin by completing the following table to determine the budgeted contribution margin per unit,...
Please help!
Task #2: Calculate the sales price and sales volume variances (Task #2 SV). Complete the yellow sections only. Write a briefum mary of the results of the analysis. Discuss both the sales price and the sales volume variance separately and then discuss the sales variances as a whole for each product line and in total. TASK # 2 High-End Litts, Inc. SALES VARIANCES December 31, Year 5 Budgeted (Standard) Price Budgeted (Standard) Volume Actual Price Actual Volume Premium...
Gigabyte, Inc. manufactures three products for the computer
industry:
Gismos (product G): annual sales, 8,000 units
Thingamajigs (product T ): annual sales, 15,000 units
Whatchamacallits (product W ): annual sales, 4,000 units
The company uses a traditional, volume-based product-costing
system with manufacturing overhead applied on the basis of
direct-labor dollars. The product costs have been computed as
follows:
Product G
Product T
Product W
Raw material
$
35.00
$
52.50
$
17.50
Direct labor
16.00
(.8 hr. at $20)
12.00...
Gigabyte, Inc. manufactures three products for the computer
industry:
Gismos (product G): annual sales, 8,000 units
Thingamajigs (product T ): annual sales, 15,000 units
Whatchamacallits (product W ): annual sales, 4,000 units
The company uses a traditional, volume-based product-costing
system with manufacturing overhead applied on the basis of
direct-labor dollars. The product costs have been computed as
follows:
Product G
Product T
Product W
Raw material
$
35.00
$
52.50
$
17.50
Direct labor
16.00
(.8 hr. at $20)
12.00...
Gigabyte, Inc. manufactures three products for the computer industry: Gismos (product G): annual sales, 8,000 units Thingamajigs (product T): annual sales, 15,000 units Whatchamacallits (product W): annual sales, 4,000 units The company uses a traditional, volume-based product-costing system with manufacturing overhead applied on the basis of direct- labor dollars. The product costs have been computed as follows: Raw material Direct labor Manufacturing overhead* Total product cost Product G $ 35.00 16.00 (.8 hr. at $20) 140.00 $191.00 Product T $...
need help thanks
Exercise 21-23 Computing and interpreting sales variances LO A1 Comp Wiz sells computers. During May, it sold 400 computers at a $900 average price each. The Mayfwed budget included sales of 450 computers at an average price of $870 each ADActual Quantity SQ - Standard Quantity AP Actual Price SP Standard Price 162. Compute the sales price variance and the sales volume variance for May. Classify it as favorable or unfavorable (Indicate the effect of each variance...
1.
2.
3.
Gigabyte, Inc. manufactures three products for the computer Industry: Gismos (product G): annual sales, 8,000 units Thingamajigs (product T): annual sales. 15,000 units Whatchamacallits (product W): annual sales, 4,000 units The company uses a traditional, volume-based product-costing system with manufacturing overhead applied on the basis of direct- labor dollars. The product costs have been computed as follows: Hav material Direct labor Nanufacturing overhead. Total product cost Product G $ 35.00 16.00 (.8 hr. at $20) 140.00 $191.00...
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 10 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 10 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 10 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 10 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 10 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 10 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 10 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 10 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 10 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 10 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 10 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 10 months ago