Market-share and market-size variances (continuation of 14-25) Soda-King prepared the budget for 2009 assuming a 10% market

Question:

Market-share and market-size variances (continuation of 14-25) Soda-King prepared the budget for 2009 assuming a 10% market share based on total sales in the western region of the United States. The total soft drinks market was estimated to reach sales of 25 million cartons in the region. However, actual total sales volume in the western region was 24 million cartons. Calculate the market-share and market-size variances for Soda-King in 2009. (Calculate all variances in terms of contribution margin.) Comment on the results.

Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...