Question A2 (a) Jack Sparrow Limited (IPL) has been trading for a number of years. JPL produces and sells a variety of c

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Question A2 A Jack Sparrow Limited Ipl Has Been Trading For A Number Of Years Jpl Produces And Sells A Variety Of C 1 (60.97 KiB) Viewed 57 times

Question A2 (a) Jack Sparrow Limited (IPL) has been trading for a number of years. JPL produces and sells a variety of ciders, and due to the recent economic downturn, has seen a fall in the volume of sales. JPL has recently appointed a new sales manager, who is to work alongside the production manager in an attempt to boost sales. The sales manager has targeted the lower end of the market, reducing the selling prices to try and increase sales levels. After the next 6 months' sales, the Managing Director has asked you to review the impressive sales growth in anticipation of paying the half yearly bonus. Sales figures are detailed below: Budgeted Sales Vintage Cider Sweet Pear Cider Strong White Cider 50,000 Bottles 50,000 Bottles 50,000 Bottles Standard Cost Cards Sweet Vintage 5.00 Strong 2.50 Sales Price 4.50 Actual Sales Figures Vintage Cider Sweet Pear Cider Strong White Cider Bottles 35,000 40,000 140,000 Revenue £ 175,000 184,000 343,000 (0) What factors should the company consider in deciding to cut its sales [3] prices? (ii) Suggest Two other sales strategies JPL could use, and provide a brief explanation of the techniques. [2] (b) Calculate the Sales Price Variances for each product. [6]