Tall Pines Brewery (TPB) makes two specialty beers in its micro-brewery: Golden Ale and Dark Ale. Both
Question:
Tall Pines Brewery (TPB) makes two specialty beers in its micro-brewery: Golden Ale and Dark Ale. Both beers sell for the same price per case in the U.S. market and in the export market, which is primarily to European countries. Both beers also have the same variable production costs, though the export product has slightly higher variable costs due to shipping and other distribution costs associated with the export beers. The price, cost, and market information for the two beers is shown below.
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The budget was prepared with the expectation that the currency exchange rate would be $1.29 per Euro. The actual average exchange rate for the period reflected the falling dollar, at $1.42 per Euro.
Required
1. What is the market share variance?
2. What is the market size variance?
3. Explain possible reasons for these variances, including a consideration of the effect of the change in the currency exchange rate for the dollar and the Euro.
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most... Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...
Step by Step Answer:
Given Data Budget Budgeted Wt Avg CM Actual Sales units cases Domestic 22000 22350 Export 12000 14500 Total 34000 36850 Price per case Domestic 88 87 ...View the full answer
Cost Management A Strategic Emphasis
ISBN: 978-0078025532
6th edition
Authors: Edward Blocher, David Stout, Paul Juras, Gary Cokins
