Gourmet Aroma Coffee House has an exclusive contract with Columbia exporters. Two brands of gourmet coffee are imported, Morning Thunder (MT) and Evening Tender (ET). The following data are provided for the current fiscal year:
The total market was estimated to be 80,000 pounds at the time of budget. The actual total market for the year is 75,000 pounds.

What is the firm's market size variance?
A) $10,200 unfavorable.
B) $11,000 unfavorable.
C) $12,240 unfavorable.
D) $13,200 unfavorable.
E) $22,000 unfavorable.

Question

Gourmet Aroma Coffee House has an exclusive contract with Columbia exporters. Two brands of gourmet coffee are imported, Morning Thunder (MT) and Evening Tender (ET). The following data are provided for the current fiscal year:
The total market was estimated to be 80,000 pounds at the time of budget. The actual total market for the year is 75,000 pounds.

What is the firm's market size variance?
A) $10,200 unfavorable. 
B) $11,000 unfavorable. 
C) $12,240 unfavorable. 
D) $13,200 unfavorable. 
E) $22,000 unfavorable.

Quizplus · Accepted Answer

The Answer of Gourmet Aroma Coffee House has an exclusive contract with Columbia exporters. Two brands of gourmet coffee are imported, Morning Thunder (MT) and Evening Tender (ET). The following data are provided for the current fiscal year:
The total market was estimated to be 80,000 pounds at the time of budget. The actual total market for the year is 75,000 pounds.

What is the firm's market size variance?
A) $10,200 unfavorable. 
B) $11,000 unfavorable. 
C) $12,240 unfavorable. 
D) $13,200 unfavorable. 
E) $22,000 unfavorable.

Gourmet Aroma Coffee House Has an Exclusive Contract with Columbia