The Omega Corporation manufactures two types of vacuum cleaners, the ZENITH for commercial building use and the House-Helper for residences. Budgeted and actual operating data for the year are as follows:
Prior to the beginning of the year, a consulting firm estimated the total volume for vacuum cleaners of the Zenith and House-Helper category to be 300,000 units, but actual industry volume was only 275,000 units.
Required:
Compute the market-share variance and market-size variance in terms of the contribution margin.

Question

The Omega Corporation manufactures two types of vacuum cleaners, the ZENITH for commercial building use and the House-Helper for residences. Budgeted and actual operating data for the year are as follows:
   Prior to the beginning of the year, a consulting firm estimated the total volume for vacuum cleaners of the Zenith and House-Helper category to be 300,000 units, but actual industry volume was only 275,000 units.
Required:
Compute the market-share variance and market-size variance in terms of the contribution margin.

Quizplus · Accepted Answer

The Answer of The Omega Corporation manufactures two types of vacuum cleaners, the ZENITH for commercial building use and the House-Helper for residences. Budgeted and actual operating data for the year are as follows:
   Prior to the beginning of the year, a consulting firm estimated the total volume for vacuum cleaners of the Zenith and House-Helper category to be 300,000 units, but actual industry volume was only 275,000 units.
Required:
Compute the market-share variance and market-size variance in terms of the contribution margin.

The Omega Corporation Manufactures Two Types of Vacuum Cleaners, the ZENITH