Kessla Taub manages the marketing department at Electronic Village. Company management has been concerned about the sales of three products and has informed Taub that, regardless of other sales, her performance in 2010 will be evaluated on whether she has met the sales budget for the following items:

Actual sales for these three products, generated in 2010, were as follows:

a. For 2010, compute the sales price variances by product.
b. For 2010, compute the sales volume variances by product.
c. Assuming that the variances computed in (a) and (b) are controllable by Taub, discuss what actions she may have taken to cause actual results to deviate from budgeted results.
d. What problems might be caused by the manner in which Taub was evaluated during2010?

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Sales Price per Unit dgeted Unit Sales HD radio tuners Satellite radios MP3 car decks $120 $ 68 $ 60 1,600 2,100 1,050 Sales Price per Unit $115 HD radio tuners Satellite radios MP3 car decks Sales Revenue $195,500 141,400 228,250 70