CONTRIBUTION MARGIN VARIANCE, CONTRIBUTION MARGIN VOLUME VARIANCE, MARKET SHARE VARIANCE, MARKET SIZE VARIANCE
Patel, Inc., produces and sells gel filled ice packs. Patel’s performance report for April follows:
|
|
Actual |
Budgeted |
|
Units sold |
50,000 |
40,000 |
|
Sales |
$350,000 |
$290,000 |
|
Variable costs |
225,000 |
190,000 |
|
Contribution margin |
$125,000 |
$100,000 |
|
Market size (in units) |
1,000,000 |
1,000,000 |
Required:
1. Calculate the contribution margin variance and the contribution margin volume variance.
2. Calculate the market share variance and the market size variance.