Question: T-tech is a Taiwan based firm, that designs, develops, and sells audio equipment. Founded in 1975 by Mr. Boss, firm sells its products throughout the

T-tech is a Taiwan based firm, that designs,

T-tech is a Taiwan based firm, that designs, develops, and sells audio equipment. Founded in 1975 by Mr. Boss, firm sells its products throughout the world. T-tech is best known for its home audio systems and speakers, noise cancelling headphones, professional audio systems and automobile sound systems. Extracts from the budget are shown in the following table: Home Audio System Division Jan 2021 System Sales (units) Selling Price Standard Cost (per System) 3,000 W PMPO 1,500 18,750 12,500 5,000 W PMPO 500 50,000 26,250 The Managing Director has sent you a copy of an email he received from the Sales Manager K. The content of the email was as follows: We have had an outstanding month. There was an adverse Sales Price Variance on the 3,000 W PMPO Systems of 22,50,000 but I compensated for that by raising the price of 5,000 W PMPO Systems. Unit sales of 3,000 W PMPO Systems were as expected but sales of the 5,000 W PMPOs were exceptional and gave a Sales Margin Volume Variance of 23,75,000. I think I deserve a bonus!" The managing Director has asked for your opinion on these figures. You got the following information: Actual results for Jan 2021 were: System 3,000 W PMPO 5,000 W PMPO Sales (units) 1,500 600 Selling Price 317,250 53,750 The total market demand for 3,000 W PMPO Systems was as budgeted but as a result of suppliers reducing the price of supporting UHD TV System the total market for 5,000 W PMPO Systems raised by 50% in Jan 2021. The company had sufficient capacity to meet the revised market demand for 750 units of its 5,000 W PMPO Systems and therefore maintained its market share. Required (1) CALCULATE the following Operational Variances based on the revised market details: Sales Margin Mix Variance

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