Question Details

What is the market-size variance



THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 1 THROUGH 3.
Zorro Company manufactures remote control devices for garage doors. The following information was collected during June:

		Actual market size (units)	10,000
		Actual market share	32%
		Actual average selling price	$10.00
		Budgeted market size (units)	11,000
		Budgeted market share	30%
		Budgeted average selling price	$11.00
		Budgeted contribution margin per
		composite unit for budgeted mix	$  5.00

1. 	What is the market-size variance?
	a.	$500 U
	b.	$1,500 U
	c.	$1,600 F
	d.	$1,000 F

	2.	What is the market-share variance?
	a.	$1,000 F
	b.	$1,100 F
	c.	$500 U
	d.	$1,500 U

	
3.	What is the sales-quantity variance?
	a.	$1,500 U
	b.	$1,000 F
	c.	$500 U
	d.	The variance cannot be determined.




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