Market share and market size variances . Soda King prepared the budget for 2011 assuming a 12% market share based on total sales in the western region of the United States. The total soft drinks market was estimated to reach sales of 20 million cartons in the region. However, actual total sales volume in the western region was 27.5 million cartons. Calculate the market share and market size variances for Soda King in 2011. (Calculate all variances in terms of contribution margin.) Comment on the results.
|
Budget for 2011 |
Actual for 2011 |
|||||
|
Product |
Selling Price |
Variable Cost per Carton |
Cartons Sold |
Selling Price |
Variable Cost per Carton |
Cartons Sold |
|
Kola |
$8.00 |
$5.00 |
480,000 |
$8.20 |
$5.50 |
467,500 |
|
Limor |
$6.00 |
$3.80 |
720,000 |
$5.75 |
$3.75 |
852,500 |
|
Orlem |
$7.50 |
$5.50 |
1,200,000 |
$7.80 |
$5.60 |
1,430,000 |