Given an actual market for ice cream of 64,000 litres, forecasted market for ice cream of 60,000 litres, actual sales of 3,200 litres, projected market share of 4.75%, and a standard contribution margin of $1.30. What is the market share variance?

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Quizplus · Accepted Answer

The market share variance is calculated as (Actual Market Share - Projected Market Share) x Actual Market Size x Contribution Margin. Actual Market Share = Actual Sales / Actual Market Size = 3,200 / 64,000 = 5%. Market Share Variance = (5% - 4.75%) x 64,000 x $1.30 = 0.25% x 64,000 x $1.30 = $208F.

Given an Actual Market for Ice Cream of 64,000 Litres