Pricing Strategy, Sales Variances Eastman, Inc., manufactures and sells three products: R, S, and T. In January, Eastman, Inc., budgeted sales of the following. Budgeted Volume Budgeted Price Product R 111,400 $28 Product S 162,300 22 Product T 15,900 19 At the end of the year, actual sales revenue for Product R and Product S was $3,094,200 and $3,654,000, respectively. The actual price charged for Product R was $27 and for Product S was $21. Only $9 was charged for Product T to encourage more consumers to buy it, and actual sales revenue equaled $382,050 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 price variance Sales volume variance Product R $ 114,600 Unfavorable $ 89,600 Favorable Product S $ 174,000 Unfavorable $ 257,400 Favorable Product T $ 424,500 Unfavorable $ 504,450 Favorable 2. Suppose that Product T is a new product just introduced during the year. What pricing strategy is Eastman, Inc., following for this product? Penetration pricing strategy