Eastman, Inc., manufactures and sells three products: R, S, and T. In January, Eastman, Inc., budgeted sales of the following. Budgeted Budgeted Volume Price Product R 119,100 $24 20 Products 168,200 25 Product 24,200 At the end of the year, actual sales revenue for Product Rand Product S was $2,829,000 and $4,353,600, respectively. The actual price charged for Product R was $23 and for Products was $24. Only $10 was charged for Product T to encourage more consumers to buy it, and actual sales revenue equaled $629,000 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 volume variance Sales price variance Product R S Products $ 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? Previous Next