Calton Slate Inc. (CSI) produces tablet computers. CSI markets three different handheld models. SlatePro is a souped-up version for the executive on the go; Slate is a consumer-oriented version; and SlateLite is a stripped-down version for the young adult market. Calton Slate's senior vice president of marketing prepared his budget at the beginning of the third quarter assuming a 40% market share based on total sales. The total tablet market was estimated by Foolinstead Research to reach sales of 282,500 units worldwide in the third quarter. However, actual sales in the third quarter were 500,000 units. Budgeted and actual operating data for the company's third quarter of 2018 are as follows: (Click the icon to view the budgeted data.) (Click the icon to view the actual data.) Require Budgeted data Actual data ( n ( Budgeted Operating Data, Third Quarter 2018 Actual Operating Data, Third Quarter 2018 Now de unfavou Variable Cost Contribution Sales Volume Contribution Variable Cost Contribution Sales Volume Contribution Selling Price Selling Price per Unit Margin per Unit in Units Dollars per Unit Margin per Unit in Units Dollars (mar SlatePro $ 376 $ 180 $ 196 $ Slate Pro $ 352 $ 177 $ 175 11,000 $ 1,925,000 Slate 272 93 179 10,170 48,590 54,240 1,993,320 8,697,6101 4,176,480 Slate 288 90 198 44,000 55,000 8,712,000 1,870,000 Requir SlateLite 142 65 77 SlateLite 106 72 34 113,000 $ 14,867,4101 While th 110,000 $ 12,507,000 Enter ya Print Done Print Done parts Calton Slate Inc. (CSI) produces tablet computers. CSI markets three different handheld models. SlatePro is a souped-up version for the executive on the go; Slate is a consumer-oriented version; and SlateLite is a stripped-down version for the young adult market. Calton Slate's senior vice president of marketing prepared his budget at the beginning of the third quarter assuming a 40% market share based on total sales. The total tablet market was estimated by Foolinstead Research to reach sales of 282,500 units worldwide in the third quarter. However, actu mpany's third quarter of 2018 are as follows: Required B (Click the icon to view the budgeted data.) (Click the icon Required market share market share )x market size-units X 1. Calculate the market share and market-size variances for CSI in the third for quarter of 2018 (calculate all variances in terms of contribution margins). ( 0.22 0.4 1 x 500,000 x S 2. Explain what happened based on the market-share and market-size variances. 3. Calculate the actual market size, in units, that would have led to no market-size Now determine the formula for the market-size variance, and then calculate the variang variance (again using budgeted contribution margin per unit). Use this the variance as favourable (F) or unfavourable (U). (For amounts entered into the formula, enter all amounts to two deci market-size figure to calculate the actual market share that would have led to a zero market-share variance. Actual Budgeted Budgeted Budgeted 9 (market size_units market sizeunits ) market share for Print Done 500,000 282,500 ) x 0.4 $ X Requirement 2. Explain what happened based on the market share and market-size variances. While the market share decreased the overall increase in the total market size results in a(n) favourable sales-quantity variance of $. Enter your answer in the answer box and then click Check
