Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Edgar Inc. manufactures and sells two fruit drinks: Kostor and Limba. Edgar Inc. prepared the budget for 2020 assuming a 25% market share based on
Edgar Inc. manufactures and sells two fruit drinks: Kostor and Limba. Edgar Inc. prepared the budget for 2020 assuming a 25% market share based on total sales in the Midwest region of the United States. (Click the icon to view the budgeted and actual results.) (Click the icon to view the budgeted and actual sales mix and contribution margin information.) (Click the icon to view the sales variances.) Requirement C.alrulate the market_chare and market_cize variancea fnr Fdnar Ins in 2000 (C.alrulate all variancea in terma nf rontrihutinn marain ) C.nmment nn the Requirement Calculate the market-share and market-size variances for Edgar Inc. in 2020. (Calculate all variances in terms of contribution margin.) Comment on the esults. Calculate the market-share variance for Edgar Inc. in 2020. (Calculate the variance in terms of contribution margin.) Begin by determining the formula or the market-share variance, then calculate the variance for Edgar Inc for 2020. Label the variance as favorable (F) or unfavorable (U). (Enter percentage values as a decimal rounded to two places, .XX. Enter all dollar values to three decimal places. Enter applicable units as whole numbers, not as millions. Round the variance to the nearest whole dollar. Abbreviation used: CM= contribution margin) Data table The total fruit drinks market was estimated to reach sales of 1.20 million cartons in the region. However, actual total sales volume in the Midwestern region was 1.44 million cartons. Budgeted and actual results for 2020 are as follows: Budget for 2020 Actual for 2020 Reference
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started