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
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