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Question Noted it sales price at $45 per unit based on planned sales of 8,000 units. However, Company Me considering to possibile changes Orion Company
Question Noted it sales price at $45 per unit based on planned sales of 8,000 units. However, Company Me considering to possibile changes Orion Company M believes it could lower the sales price to $42 per unit and sell an estimated 8.600 units Option Company M beves it could raise it sales price to $49 per unit and sell 7.300 units A Assume Company M SUCCessfully completes option 1 as planned (that is, option 1 becomes the actual results). Determine the Overall volume and flexible/Price variances. Make sure you indicate both the amount and the direction (Favorable Unfavorable) of each variance. B. Assume Company M successful completes option 2 as planned (that is, option 2 becomes the actual results). Determine the Overall, Volume and Flexible/Price variances. Make sure you indicate both the amount and the hection (Favorable, Unfavorable) of each variance. C. Which option should Company M pursue? Why? BIVA. AI E x x
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