The Parsons Company has budgeted to capture 25% of the market in which they operate which currently contains 1,000 stores.The budgeted contribution margin per unit sold is $4.50.If they were actually able to capture only 20% of the market, but their actual contribution margin was $5.00 per unit, their market share variance was:
A)$250 favorable
B)$225 unfavorable
C)$250 unfavorable
D)$225 favorable

Question

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The Answer of The Parsons Company has budgeted to capture 25% of the market in which they operate which currently contains 1,000 stores.The budgeted contribution margin per unit sold is $4.50.If they were actually able to capture only 20% of the market, but their actual contribution margin was $5.00 per unit, their market share variance was:
A)$250 favorable
B)$225 unfavorable
C)$250 unfavorable
D)$225 favorable

The Parsons Company Has Budgeted to Capture 25% of the Market