(Appendix 11A)Iraj Company Retails Two Grades of Persian Carpets: Grade

question 63

Essay

(Appendix 11A)Iraj Company retails two grades of Persian carpets: Grade X and Grade Y.The carpets are sold by rolls.The following is a summary of the company's activities for last year:

$\begin{array}{l}\begin{array}{lll}\\\text {Sales in rolls:}\\\text {Budget}\\\text {Actual}\\\text {Contribution margin per roll:}\\\text {Budget}\\\text {Actual}\\\text {Market volume in rolls:}\\\text {Forecast}\\\text {Actual}\\\text {Required:}\\\end{array}\begin{array}{ccc}Grade X&Grade Y &Total\\\\1,600 & 400 & 2,000 \\1,980 & 220 & 2,200 \\\\\$ 800 & \$ 2,000 & \\\$ 700 & \$ 2,500 &\\\\&&10,000\\&&13,750\end{array}\end{array}$

Required:

a) Assume the two grades of carpet are close substitutes. Calculate the sales volume variance for each grade of carpet and analyze each into a sales mix variance and a sales quantity variance.
b) Analyze the sum of the sales quantity variance into its two components: market volume variance and market share variance.
c) Comment on the appropriateness of the assumption of close substitution between the two grades of carpet. Comment also on the effect, if any, on the analysis in part a) above if this assumption is considered inappropriate.

Understand the conceptual framework of power in organizations.

Identify the different sources and types of power within the workplace.

Recognize the role of influence and persuasion in organizational dynamics.

Distinguish between the various strategies employed to increase or manage power.

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Definitions:

Radical Equation

A mathematical equation that involves a radical, where the variable is inside a root, such as a square root or cube root.

Graphing Calculator

A handheld or software tool that plots graphs, solves equations, and performs other mathematical calculations.

Pythagorean Theorem

A fundamental relation in Euclidean geometry among the three sides of a right triangle, stating that the square of the hypotenuse is equal to the sum of the squares of the other two sides.

Radical Equation

An equation in which the variable is contained within a radical symbol or has a radical expression with the variable.