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Question - Jarvis Co. manufactures RFID chips for electronic equipment. The following information was collected during June.
Actual market size (units) 32,000
Budgeted market size (units) 20,000
Actual market share 34%
Budgeted market share 32%
Budgeted selling price per unit $12.00
Actual selling price per unit $10.50
Budgeted cont. margin per unit $4.00
Actual cont. margin per unit $3.00
Required - What is the company's market-share variance?
1. $1,600 unfavourable
2. $1,600 favourable
3. $2,560 favourable
4. $1,200 unfavourable
Further investigation has revealed that $198,500 of the fixed manufacturing expenses. What would be the financial advantage of dropping product
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