40. (Revenue variances) “Tot Toons” is a videotape series that is marketed to day care centers and parents. The series has been found to make babies who watch it extremely content and quiet. In 2001, Angels Ltd., maker of the tapes, sold 400 of the series for $60 per package. In preparing the 2002 budget, company management estimated a 15 percent increase in sales volume because the price was to be reduced by 10 percent. At the end of 2002, company management is disappointed that actual revenue is only $24,440 although 470 packages of the series were sold.

a. What was the expected revenue for 2002?

b. Calculate the price and volume variances for Angels Ltd.