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Deep Cove Kayak sells sport water shoes and competition water shoes. For the summer 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.
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