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Problem - Your company is part of a large industry. The industry had sales volume of 248.6 million units last quarter. When setting the budget, you had anticipated industry volume of 227.1 million and market share of 0.29%. Your actual sales volume was 545858 units.
In addition, the following budget and actual amounts apply to the quarter for your business (all in $million).
Budget
Actual
Revenue
2.47
2.66
Variable cost
1.12
1.22
Fixed cost
1.00
1.05
Required -
a) Provide the market share variance (absolute value, whole number of dollars, not in millions).
b) Is the above variance favorable or unfavorable?
c) Now provide the industry volume variance (absolute value, whole number, not in million of $).
d) Is the above variance favorable or unfavorable?
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