Problem 17-62 (Static) Industry Volume and Market Share Variances -- Variance Investigation (LO 17-3,7) La Salle Outfitters organizes wilderness tours. For the most recent touring season, the industry volume variance showed La Salle sold 336 more tours than expected, but the market share variance resulted in 96 fewer tours than expected. The standard contribution margin from a single tour is $640. The industry trade group reported that the number of tours sold during the season was 1.400 greater than expected. La Salle's revenues total $1,200,000 during for a typical season. Required: a. What budgeted market share does La Salle use in planning its budget? b. What was the actual market share La Salle captured during the season? a. What budgeted market share does La Salle use in planning its budget? b. What was the actual market share La Salle captured during the season? %

Problem 17-62 (Static) Industry Volume and Market Share Variances -- Variance Investigation (LO 17-3,7) La Salle Outfitters organizes wilderness tours. For the most recent touring season, the industry volume variance showed La Salle sold 336 more tours than expected, but the market share variance resulted in 96 fewer tours than expected. The standard contribution margin from a single tour is $640. The industry trade group reported that the number of tours sold during the season was 1.400 greater than expected. La Salle's revenues total $1,200,000 during for a typical season. Required: a. What budgeted market share does La Salle use in planning its budget? b. What was the actual market share La Salle captured during the season? a. What budgeted market share does La Salle use in planning its budget? b. What was the actual market share La Salle captured during the season? %

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter18: Pricing And Profitability Analysis

Section: Chapter Questions

Problem 5CE: Saginaw Company is a garden products wholesale firm. In December, Saginaw Company expects to sell...

See similar textbooks

Similar questions

Problem 17-62 (Static) Industry Volume and Market Share Variances -- Variance Investigation (LO 17-3,7) La Salle Outfitters organizes wilderness tours. For the most recent touring season, the industry volume variance showed La Salle sold 336 more tours than expected, but the market share variance resulted in 96 fewer tours than expected. The standard contribution margin from a single tour is $640. The industry trade group reported that the number of tours sold during the season was 1.400 greater than expected. La Salle's revenues total $1,200,000 during for a typical season. Required: a. What budgeted market share does La Salle use in planning its budget? b. What was the actual market share La Salle captured during the season? a. What budgeted market share does La Salle use in planning its budget? b. What was the actual market share La Salle captured during the season? %
Rosenberry Company computed the following revenue variances for January: Revenue price variance (350,000) Favorable Revenue volume variance50,000 Unfavorable Assuming that the planned selling price per unit was 10 and that actual sales were 175,000 units, determine the following: a. Actual selling price of January. b. Planned number of units that were to be sold in January.
Lowell Manufacturing Inc. has a normal selling price of 20 per unit and has been selling 125,000 units per month. In November, Lowell Manufacturing decided to lower its price to 19 per unit expecting it can increase the units sold by 16%. a. Compute the normal revenue with a 20 selling price. b. Compute the planned revenue with a 19 selling price. c. Compute the actual revenue for November, assuming 135,000 units were sold in November at 19 per unit. d. Compute the revenue price variance, assuming 135,000 units were sold in November at 19 per unit. e. Compute the revenue volume variance, assuming 135,000 units were sold in November at 19 per unit. f. Analyze and interpret the lowering of the price to 19.
his year’s total sales of Bulldogs Inc. is P4,600,000. The following variances are determined:· Sales Price Variance – 750,000 favorable· Cost Price Variance – 100,000 unfavorable· Sales Volume Variance – 150,000 unfavorableUsing horizontal analysis, determine the percentage change from the prior year total sales to the current year total sales. 20% 10% 25% 15%
The selling price of the sole product of Bulldogs Inc. last year is P30 and the company earns a per unit gross profit of P10. The number of units sold by the company this year is 20% more than the prior year level of 15,000. What is the cost volume variance under the 4-way analysis? A. 60,000 unfavorable B. 30,000 favorable C. 60,000 favorable D. 30,000 unfavorable
1. This year’s total sales of Yui Inc. are P4,600,000. The following variances are determined: · Sales Price Variance – 750,000 favorable · Cost Price Variance – 100,000 unfavorable · Sales Volume Variance – 150,000 unfavorable Using horizontal analysis, determine the percentage change from the prior year's total sales to the current year's total sales. 2. The income statement of Petra Inc. in 2022 reflects a net Income of P2,050,000. The dividend policy of the company is to pay an annual cash dividend of P2 per share to common stock regardless of the market price of the share. If the dividend yield determined for the last day of 2022 is 20%, how much is the fair value of the share? (per share)
Jordan Educational Services had budgeted its training service charge at $71 per hour. The company planned to provide 31,000 hours of training services during the year. By lowering the service charge to $55 per hour, the company was able to increase the actual number of hours to 32,000. Required a. Determine the sales volume variance, and indicate whether it is favorable or unfavorable. Note: Select "None" if there is no effect (i.e., zero variance). b. Determine the flexible budget variance, and indicate whether it is favorable or unfavorable. Note: Select "None" if there is no effect (i.e., zero variance). c. Did lowering the price of training services increase revenue? a. Volume variance b. Flexible budget variance c. Did lowering the price of training services increase revenue? Sales
Munoz Educational Services had budgeted its training service charge at $69 per hour. The company planned to provide 31,000 hours of training services during the year. By lowering the service charge to $63 per hour, the company was able to increase the actual number of hours to 32,800. Required a. Determine the sales volume variance, and indicate whether it is favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).) b. Determine the flexible budget variance, and indicate whether it is favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).) c. Did lowering the price of training services increase revenue? Variance a. Volume variance b. Flexible budget variance c. Was the decision profitable? MacBook Air
Woodruff Flowering Plants provides the following information for the month of May: Actual Sales in units Contribution margin per unit For May, Woodruff will report a(n) OA. favorable sales - mix variance B. favorable market share variance OC. unfavorable market share variance D. unfavorable sales - mix variance Fuchsia 21,000 $22 Dogwood 4.500 $19 C Fuchsia Budget 18,000 $23 Dogwood 3,200 $18
Revenue variances Rockport Industries Inc. gathered the following data for March: Planned Actual Sales price per unit $150 $144 Number of units of sales × 12,500 × 12,900 Total sales $1,875,000 $1,857,600 Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. a. Compute the revenue price variance. $fill in the blank 1 b. Compute the revenue volume variance. $fill in the blank 3 c. Compute the total revenue variance. $fill in the blank 5
Sales Variances Assume that Casio Computer Company, LTD. sells handheld communication devices for $130 during August as a back-to-school special. The normal selling price is $160. The standard variable cost for each device is $80. Sales for August had been budgeted for 600,000 units nationwide; however, due to the slowdown in the economy, sales were only 550,000. Compute the revenue variance, sales price variance, sales volume variance, and net sales volume variance.
Sales last year is 6M and decreased to 5.2M in the current year. The sales price increased by 30%. What is the sales price variance? 1,200,000 UNFAV 800,000 FAV 800,000 UNFAV 1,560,000 FAV None of the above