The market share variance measures the effect of the difference in market shares on the firm's total contribution margin and:
A) Net income.
B) Operating income.
C) Investment income.
D) Total sales.

Question

Quizplus · Accepted Answer

The market share variance measures the impact of changes in market share on a firm's operating income, not on net income, investment income, or total sales. Therefore, choice B, operating income, is the correct answer.

The Market Share Variance Measures the Effect of the Difference