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Special Tea Products (STP) has an exclusive contract with Tea Distributors. Two brands of Teas are imported, Strong and Mild, and sold to retail
Special Tea Products (STP) has an exclusive contract with Tea Distributors. Two brands of Teas are imported, Strong and Mild, and sold to retail outlets. The monthly budget for the contract is based on a combination of last year's performance, a forecast of general industry sales, and the company's expected share of the Canadian market for imported Tea. The following information is provided for the month of May: Budgeted Strong Budgeted Mild Actual Strong Actual Mild Price per kg $2.00 $3.00 $2.50 $2.50 Variable cost /kg 1.00 1.50 1.00 2.00 Cont. margin $1.00 $1.50 $1.50 $0.50 Sales (in kg) 2,000 1,500 1,700 1,800 Budgeted fixed costs are $1,750. Actual fixed costs are $2,000. What is the STP total sales-quantity variance for revenues? Elmo's Educational Software Outlet sells two or more of the video games as a single package. Managers are keenly interested in individual product profitability figures. Information pertaining to three bundled products and the stand- alone prices is as follows: Package Packaged Price Stand-Alone Selling Price Cost Reading Fun $50 $7.20 1. Reading Fun & Math Fun $88 Math Fun $60 $8.00 2. Reading Fun & Analysis $112 Analysis $90 $10.00 3. All three $152 Assume Reading Fun is the primary product, followed by Math Fun, and then Analysis. Using the incremental method, what amount of revenue will be allocated to Math Fun in the package that contains all three products?
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