Ember Inc. prepared the budget for 2017 assuming a 20% market share based on total sales in the Midwest region of the United States. Required Calculate the market-share and market-size variances for Ember Inc. in 2017. (Calculate all variances in terms of contribution margin.) i Sales variances Sales- volume Budgeted CM per unit x ( Actual units sold Static budget units sold variance ) = $ 30,360 $ 195,910 Kostor 4.60 x ( 138,600 132,000 Limba 6.85 x ( 59,400 88,000 The total sales-volume variance is 165,550 U Sales- Actual Budgeted Budgeted Budgeted quantity ( qty all units sold qty all units sold )x sales-mix % x CM per unit %3D variance Kostor 198,000 220,000 )x 60 % x $ 4.60 = $ 60,720 U 60,280 Limba 198,000 220,000 ) x 40 % x $ 6.85 U The total sales-quantity variance is $ 121,000 U Actual Actual Budgeted Budgeted Sales-mix qty all units sold x ( sales-mix % - sales-mix % ) x CM per unit variance %3D = $ 91,080 $ 135,630 Kostor 198,000 70 % - 60 % ) x $ 4.60 F Limba 198,000 x ( 30 % - 40 % ) x $ 6.85 U %3D The total sales-mix variance is $ 44,550 U Comment on the results. - X O Budgeted and actual results The market was estimated to reach sales of 1.10 million cartons in the region. However, actual total sales volume in the Midwestern region was 1.32 million cartons. Budgeted and actual results for 2017 are as follows: Budget for 2017 Actual for 2017 Selling Variable Cost Cartons Selling Variable Cost Cartons Product Price per Carton Sold Price per Carton Sold Kostor $ 13.00 $ 8.40 132,000 $ 13.40 $ 9.05 138,600 Limba $ 18.00 $ 11.15 88,000 $ 19.20 $ 11.15 59,400 1 Sales mix and contribution margin Budget for 2017 Contribution Margin Sales Volume Sales Mix Contribution per Unit in Units (Based on Units) Margin Kostor 4.60 132,000 60 % 607,200 Limba 6.85 88,000 40 % 602,800 220,000 100 % 1,210,000 Total Actual for 2017 Contribution Margin Sales Volume Sales Mix Contribution per Unit in Units (Based on Units) Margin Kostor 4.35 138,600 70 % 602,910 Limba $ 8.05 59,400 30 % 478,170 198,000 100 24 1,081,080 Total %