Question
Extreme Tablet Inc. (ETI) produces tablet computers. ETI markets three different handheld models. Pro is a souped-up version for the executive on the go; Consumer
Extreme Tablet Inc. (ETI) produces tablet computers. ETI markets three different handheld models. Pro is a souped-up version for the executive on the go; Consumer is a consumer-oriented version; and Lite is a stripped-down version for the young adult market. You are ETI's senior vice president of marketing. The CEO has discovered that the total contribution margin came in lower than budgeted, and it is your responsibility to explain to him why actual results are different from the budget. Budgeted and actual operating data for the company's third quarter of 2018 are as follows:
Budgeted Data:
Budgeted Operating Data, Third Quarter 2018
Selling price Variable cost per unit sales volume in units Market value
Pro $379 $182 12,500 20,000
Consumer 269 98 37,500 40,000
Life 149 65 50,000 65,000
Actual data:
Actual operating data, Third quarter 2018
Selling price variable cost per unit sales volume in units Market value
Pro 349 178 11,000 17,500
Consumer 285 92 44,000 50,000
Life 102 73 55,000 57,500
Required
- Calculate the sales-price variance for Pro and Consumer
- Calculate the sales-volume variance for Consumer and Lite
- Calculate the sales-quantity variance for Pro and Lite
- Calculate the sales-mix variance for Pro and Consumer
- Calculate the market-volume variance for Consumer and Lite
- Calculate the market-share variance for Consumer and Lite
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