question is in the photo

RM Enterprises is amanufacturer of consumer electronics products. The industry is very competitive, and RJNI has seen its prots fall in recent years, including an operating loss of $70,000 last year. In an attempt to turn that around this year, RJNI impluented a marketing and cost reduction ms. Included in the arms were dealer discounts, increased direct advertising of $30,000 and an aggressive cost reduction programme. The summarized nancial results for RM are shown below: Current Year Prior Year Gross sales: $1,155,000 $1,600,000 Less variable costs __ Direct materials 371,250 720,000 + Direct labor 534,600 800,000 Total contribution margin $249,150 $80,000 ' Fixed costs 180,000 150,000 Operating income $69,150 [$70,000: |_ + _| " 0 Operating data for the current and pr1or year follow: Current Year Prior Year Sales units 33,000 40,000 Selling price $35 $40 Direct materials price per unit ofmaterial $15 $18 Direct materials required per unit 0.75 1 Wage rate ($ihour) $92'hour $102'hour Direct labor hour required per unit 1.8 hours 2 hours Market size 300,000 400,000 Assume that RJNI, for efciency and to reduce cost, maintains little or no direct materials or work-in-process inventory. Required: a. Is RJM's strategy in the current year one of product differentiation or cost leadership? Explain. (2 marks) b. Calculate the selling price variance for the current year based on sales dollars and the sales volume variance based on the contribution margin using the prior year's results as standard. (3 marks) C. as standard. Calculate the direct material quantity and price variances using the prior year's results (3 marks) d. standard. Calculate the direct labor efficiency and rate variances using the prior year's results as (3 marks) e. Calculate the market share variance and market size variance. (3 marks) f. Based on the above analysis, how successfully was RJM's strategy? (6 marks)