Answer the following questions using the information below:
Bathurst Company manufactures remote control devices for garage doors.The following information was collected during June:
$$\begin{array} { l r }
\text { Actual market size (urits) } & 10000 \
\text { Actual market share } & 32 \% \
\text { Actual average selling price } & \$ 10.00 \
\text { Budgeted market size (units) } & 11000 \
\text { Budgeted market share } & 30 \% \
\text { Budgeted average selling price } & \$ 11.00 \
\text { Budgeted contribution margin per } & \
\text { composite unit for budgeted mix } & \$ 4.00
\end{array}$$
-What is the market-size variance?

Question

Answer the following questions using the information below:
Bathurst Company manufactures remote control devices for garage doors.The following information was collected during June:
 $$\begin{array} { l r } 
\text { Actual market size (urits) } & 10000 \
\text { Actual market share } & 32 \% \
\text { Actual average selling price } & \$ 10.00 \
\text { Budgeted market size (units) } & 11000 \
\text { Budgeted market share } & 30 \% \
\text { Budgeted average selling price } & \$ 11.00 \
\text { Budgeted contribution margin per } & \
\text { composite unit for budgeted mix } & \$ 4.00
\end{array}$$
-What is the market-size variance?

Quizplus · Accepted Answer

The market-size variance is the difference between the actual market size and the budgeted market size, multiplied by the budgeted contribution margin per composite unit for the budgeted mix. In this case, the market-size variance is (10000 - 11000) * $4.00 = $4000 U.

Answer the Following Questions Using the Information Below: Bathurst Company

Answer the Following Questions Using the Information Below:
Bathurst Company