Calculate the net marketing contribution variance,if the actual net marketing contribution and net marketing contribution estimated in the plan are $450,000 and $900,000,respectively.The actual percentage of market share is 25%.
A)$450,000
B)$11,250
C)-$450,000
D)-$11,250
E)$225,000

Question

Quizplus · Accepted Answer

Net marketing contribution variance = Actual net marketing contribution - Estimated net marketing contribution
= $450,000 - $900,000 = -$450,000

Since the variance is negative, it means that the actual net marketing contribution is lower than the estimated net marketing contribution. This could be due to various reasons such as lower sales volume, higher costs, lower selling price, etc. Therefore, option C is the correct answer.

Calculate the Net Marketing Contribution Variance,if the Actual Net Marketing