If the market-size variance is $400 U and the sales-mix variance is $700 F, and the market share variance is $300 F, we know that which of the following is true?

Question

Quizplus · Accepted Answer

The sales-quantity variance is the difference between the actual sales quantity and the budgeted sales quantity, multiplied by the budgeted sales price per unit. The sales volume variance is the difference between the actual sales volume and the budgeted sales volume, multiplied by the budgeted sales price per unit. The market-size variance is the difference between the actual market size and the budgeted market size, multiplied by the budgeted sales price per unit. The sales-mix variance is the difference between the actual sales mix and the budgeted sales mix, multiplied by the budgeted sales price per unit. The market share variance is the difference between the actual market share and the budgeted market share, multiplied by the budgeted sales price per unit.In this case, the market-size variance is $400 U, the sales-mix variance is $700 F, and the market share variance is $300 F. This means that the actual market size is $400 U more than the budgeted market size, the actual sales mix is $700 F more than the budgeted sales mix, and the actual market share is $300 F more than the budgeted market share.The sales-quantity variance is the difference between the actual sales quantity and the budgeted sales quantity, multiplied by the budgeted sales price per unit. We do not have enough information to calculate the sales-quantity variance.The sales volume variance is the difference between the actual sales volume and the budgeted sales volume, multiplied by the budgeted sales price per unit. We do not have enough information to calculate the sales volume variance.Therefore, the correct answer is C: The sales-quantity variance is $100 U, and the sales volume variance is $600 F.

If the Market-Size Variance Is $400 U and the Sales-Mix