Question Details

Compute the market-share variance and market-size variance 


1.	The Omega Corporation manufactures two types of vacuum cleaners, the ZENITH for commercial building use and the House-Helper for residences. Budgeted and actual operating data for the year 20x3 are as follows:

	Static Budget	ZENITH	House-Helper	Total
	Number sold	15,000	60,000	75,000
	Contribution margin	$3,750,000	$12,000,000	$15,750,000

	Actual Results	ZENITH	House-Helper	Total
	Number sold	16,500	38,500	55,000
	Contribution margin	$6,200,000	$10,200,000	$16,400,000

	Prior to the beginning of the year, a consulting firm estimated the total volume for vacuum cleaners of the Zenith and House-Helper category to be 300,000 units, but actual industry volume was only 275,000 units. 


	Required: 
	Compute the market-share variance and market-size variance in terms of the contribution margin.





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