Saturday, May 26, 2012

What is the market-size variance

ACCOUNTING

Multiple Choice

Zorro Company manufactures remote control devices for garage doors. The following information was collected during June:


Actual market size (units) 10,000

Actual market share 32%

Actual average selling price $10.00

Budgeted market size (units) 11,000

Budgeted market share 30%

Budgeted average selling price $11.00

Budgeted contribution margin per

composite unit for budgeted mix $ 5.00


What is the market-size variance?

a. $500 U

b. $1,500 U

c. $1,600 F

d. $1,000 F

Click here for the SOLUTION

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