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