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Compute the market-share variance and market-size variance

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Reference no: EM132772008

BC Surf Supplies Ltd. sells sport surfboard waxand competition surfboard wax. For the busy fall season the following information is available:

                                                     Competition             Sport

Actual market size                  200,000                   400,000

Budgeted market size                 250,000                300,000

Actual market-share                     38%                 36%

Budgeted market-share                 36%                   32%

Budgeted cont. margin                   $2.40                $1.00

Actual average selling price           $14.00                  $6.50

Required:

Problem a. Compute the market-share variance and market-size variance. (Carry intermediate calculations to four decimal places)

Problem b. Compute the total sales-quantity variance.

Reference no: EM132772008

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