The market size variance is the difference between actual and budgeted industry sales in units, multiplied by the budgeted market share percentage, times the:
A)actual market share percentage
B)budgeted market share percentage
C)actual average unit contribution margin
D)budgeted average unit contribution margin

Question

Quizplus · Accepted Answer

The market size variance is calculated using the budgeted average unit contribution margin to determine the impact of the difference in market size on profitability.

The Market Size Variance Is the Difference Between Actual and Budgeted