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Revenue variances Lowell Manufacturing Inc. has a normal selling price of $20 per unit and has been selling 125,000 units per month. In November, Lowell
Revenue variances Lowell Manufacturing Inc. has a normal selling price of $20 per unit and has been selling 125,000 units per month. In November, Lowell Manufacturing decided to lower its price to $19 per unit expecting it can increase the units sold by 16%. a. Compute the normal revenue with a $20 selling price. b. Compute the planned revenue with a $19 selling price. c. Compute the actual revenue for November, assuming 135,000 units were sold in November at $19 per unit. d. Compute the revenue price variance, assuming 135,000 units were sold in November at $19 per unit. e. Compute the revenue volume variance, assuming 135,000 units were sold in November at $19 per unit. f. Analyze and interpret the lowering of the price to $19. Decreasing the selling price to $19 did total revenue, but it did not the revenues by 16% as planned
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