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Question - Butterfly Kitchens Inc. (BKI) makes herbal remedies for many common illnesses. The remedies are available in kits that sell for $34 each. BK] projected sales of 75,000 kits in its first year. Budgeted variable costs per kit were $12.25. In its first year, BK] sold 63,250 kits at a price of $36 each. BKI's projections for the first year were based on an expected 12% of the total herbal remedy market (expected total market size of 625,000 kits). Actual results at the end of the first year were 11.59% of the total herbal remedy market (actual total market size of 550,000 kits).
Required -
a) Calculate the sales price and sales volume variances for BKI's first year.
b) Calculate the market share and market size variances for BKI's first year.
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