Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Question 2 Rest Easy produces two types of mattresses: Regular and Heavenly. Budgeted and actual data for 2018 were as follows: Master Budget Actual Regular
Question 2 Rest Easy produces two types of mattresses: Regular and Heavenly. Budgeted and actual data for 2018 were as follows: Master Budget Actual Regular Heavenly Regular Heavenly $300 $ 800 $ 325 $ 700 {gable COMP\" $220 $ 590 $ 238 $ 583 4,500 5,500 7,200 4,800 Market Data for 2019: Expected total market unit sales of mattresses: Regular 300,000; Heavenly 200,000 Actual total market sales of beds: Regular 444,444; Heavenly 222,223 Required: 1. Calculate the following variances: a. Sales price. b. Market volume. c. Market share. d. Sales mix. e. Sales quantity. 2. During 2019, Big Sleep, one of Rest Easy's key competitors, introduced an aggressive new marketing campaign that included online advertising. Big Sleep also reduced prices on its mattress that competes directly with Rest Easy's Heavenly model. Management at Rest Easy decided to follow suit by reducing the price on the Heavenly model but decided against changing the marketing approach. Using any of the variances that you believe are relevant from (1) above, evaluate the decisions made by Rest Easy's managers regarding the Heavenly model
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started