Better Products, Inc., buys electronic games wholesale and then sells them retail via the internet. It is a highly competitive business that Better Products has to carefully manage to remain profitable. Over the last year, it has seen the following results.

Glen Landry, owner of Better Products, would like to understand exactly how well his company performed against its budget and in the industry in general. He has asked for your help in analyzing performance.

REQUIRED:

a. Develop the industry volume variance.

b. Develop the market share variance.

c. Develop the selling price variance.

d. How would you describe Better Product’s performance over the past year? Please be specific.

Transcribed Image Text:

Better Products, Inc. Line Item Budget Actual Industry volume 450,000,000 500,000,000 Market share 12.50% 12.75% Selling price $9.99 $9.50