Kalamazoo Computer Accessory Company (KCAC) distributes keyboard trays to computer stores. The keyboard trays can be attached
Question:
During the first quarter of 20x5, management estimated that the total market for these products actually would be 10 percent below the original estimates. In an attempt to prevent unit sales from declining as much as industry projections, management implemented a marketing program. Included in the program were dealer discounts and increased direct advertising. The business grade line was emphasized in this program.
Required:
1. Compute the sales-price and sales-volume variances for each product line. Indicate whether each variance is favorable or unfavorable.
2. Discuss the apparent effect of KCACs special marketing program (i.e., dealer discounts and additional advertising) on the 20x5 operating results.
(CMA,adapted)
A dealer in the securities market is an individual or firm who stands ready and willing to buy a security for its own account (at its bid price) or sell from its own account (at its ask price). A dealer seeks to profit from the spread between the...
Step by Step Answer:
Managerial Accounting Creating Value in a Dynamic Business Environment
ISBN: 978-0078025662
10th edition
Authors: Ronald Hilton, David Platt