Sarasota, Inc. produces three different grades of shovels. The differences among the shovels are due to the materials and construction of the handles. These differences result in cost and selling price differences. Sarasota's product strategy is to provide high quality, long-lasting tools. Originally, the target market was construction and landscape design companies. They introduced the low-price model when home renovation enthusiasts started asking for Sarasota products but seemed reluctant to pay the price for professional-grade tools. Estimated sales information for the upcoming 6 months is as follows (assume an even distribution over the 6 months). Professional Grade Performance Grade Home Repairs Market Size Sarasota Sales (shovels) (shovels) 30,000 24,500 20,200 4,900 50,600 9,900 Selling Price $136 $ 91 $ 32 Variable Costs $52 $39 $14 Due to an upturn in the housing market and a stronger economy, 3 months into this 6-month planning period, actual sales information indicated the following. Professional Grade Performance Grade Market Size Sarasota Sales (shovels) (shovels) 19,900 17,650 8,100 1,750 9,900 35,100 Selling Price Variable Costs $136 $52 $ 91 $39 Home Repairs $ 32 $14 Analyze the market share and market size variances. (Enter all amounts as positive. Round intermediate calculations to 6 decimal places, e.g. 1.546572 and final answers to O decimal places, e.g. 5,125.) Market Share Variance Market Size Variance Professional Grade $ V Performance Grade $ $ Home Repair $ $ Total $ $ places, e.g. 5,125.) Market Share Variance Market Size Variance 1,088,842 Unfavourable $ 117,346 Favourable Professional Grade Performance Grade $ 11,204 Unfavourable 267,127 Unfavourable 97,067 Unfavourable Home Repair $ 54,588 Favourable V Total $ 160,730 Favourable 1,453,019 Unfavourable As a result of the results for the first 3 months, Sarasota increased the selling price of the professional-grade shovel to $146 and the home repairs shovel to $37. Further, the selling price of the performance grade shovel was reduced to $86. The sales results for the second 3 months are as follows 1,950 Market Size Sarasota Sales (shovels) (shovels) Selling Price Variable Costs Professional Grade 19,900 17,650 $146 $52 Performance Grade 10,100 $ 86 $39 Home Repairs 40,000 14,800 $ 37 $14 Analyze the market changes and the effect of the sales price change. (Enter all amounts as positive. Round intermediate calculations to 6 decimal places, e.g. 1.546572 and final answers to o decimal places, e.g. 5,125.) Market Share Variance Market Size Variance Professional Grade Performance Grade $ V $ Home Repair $ Total $ Sarasota, Inc. produces three different grades of shovels. The differences among the shovels are due to the materials and construction of the handles. These differences result in cost and selling price differences. Sarasota's product strategy is to provide high quality, long-lasting tools. Originally, the target market was construction and landscape design companies. They introduced the low-price model when home renovation enthusiasts started asking for Sarasota products but seemed reluctant to pay the price for professional-grade tools. Estimated sales information for the upcoming 6 months is as follows (assume an even distribution over the 6 months). Professional Grade Performance Grade Home Repairs Market Size Sarasota Sales (shovels) (shovels) 30,000 24,500 20,200 4,900 50,600 9,900 Selling Price $136 $ 91 $ 32 Variable Costs $52 $39 $14 Due to an upturn in the housing market and a stronger economy, 3 months into this 6-month planning period, actual sales information indicated the following. Professional Grade Performance Grade Market Size Sarasota Sales (shovels) (shovels) 19,900 17,650 8,100 1,750 9,900 35,100 Selling Price Variable Costs $136 $52 $ 91 $39 Home Repairs $ 32 $14 Analyze the market share and market size variances. (Enter all amounts as positive. Round intermediate calculations to 6 decimal places, e.g. 1.546572 and final answers to O decimal places, e.g. 5,125.) Market Share Variance Market Size Variance Professional Grade $ V Performance Grade $ $ Home Repair $ $ Total $ $ places, e.g. 5,125.) Market Share Variance Market Size Variance 1,088,842 Unfavourable $ 117,346 Favourable Professional Grade Performance Grade $ 11,204 Unfavourable 267,127 Unfavourable 97,067 Unfavourable Home Repair $ 54,588 Favourable V Total $ 160,730 Favourable 1,453,019 Unfavourable As a result of the results for the first 3 months, Sarasota increased the selling price of the professional-grade shovel to $146 and the home repairs shovel to $37. Further, the selling price of the performance grade shovel was reduced to $86. The sales results for the second 3 months are as follows 1,950 Market Size Sarasota Sales (shovels) (shovels) Selling Price Variable Costs Professional Grade 19,900 17,650 $146 $52 Performance Grade 10,100 $ 86 $39 Home Repairs 40,000 14,800 $ 37 $14 Analyze the market changes and the effect of the sales price change. (Enter all amounts as positive. Round intermediate calculations to 6 decimal places, e.g. 1.546572 and final answers to o decimal places, e.g. 5,125.) Market Share Variance Market Size Variance Professional Grade Performance Grade $ V $ Home Repair $ Total $
