Ericson Inc. prepared the budget for 2017 assuming a 25 % market share based on total sales in the Midwest region of the United States (Click the icon to viow the budgeted and actual results.) (Cick the icon to view the budgeted and actual salos mix and contribution margin information.) the icon to view the sales variances.) Required in 2017 (Calculate all vanances in terms of contribution margin Calculate the market-share and market-size variances for Encson Inc. Comment on the results - X i Sales mix and contribution margin Budgeted and actual results i reach sales of 0.00 million cartons in the region. However, actual total sales Midwestern region was 0.99 million cartons, Budgeted and actual results for 2017 are as follgws The market was estimated Hudget tor 2017 volume in t Contribution Margin Sales Volume Sales Mix Contribution Budget for 2017 Actual for 2017 per Unit in Units (Based on Units) Margin Selling Variable Cost Cartons Selling Variable Cost Cartons Kostor 4.60 132,000 60% S 607,200 Product Price per Carton Sold Price per Carton Sold 8.000 40 602.800 Limba 6 85 $ 17.55 S 17.00 S12.40 132.000 13.25 138,600 Kostor 220,000 100 1.210.000 Tola $ 11.30 S 11.15 18.00 88,000 $19.50 59 400 Limba Actual for 2017 Contribulion Margin Sales Volume Sales Mix Contribulion per Unil n Units (Based on Units) Margin Print Done 4 30 138 600 595 980 Kostor 59.400 30 e 467.000 Limbe 8.20 1 083 060 198,000 100 Total Sales variances Sales-volume Budgeted CM per unit Actual units sold ) = x ( Static budget units sold variance ) = $ 30,360 4.60 Kostor ( 138,600 132,000 P ) = $ 195,910 6.85 59,400 88,000 Limba ( 165,550 The total sales-volume variance is S Sales-quantity Budgeted Actual Budgeted Budgeted CM per unit ( qty all units sold qty all units sold ) X sales-mix variance = $ 60,720 % x $ Kostor 198,000 220,000 X 60 4.60 U $ 60,280 220,000 40 6.85 Limba 198,000 ) X The total sales-quantity variance is 121,000 Actual Sales-mix Actual Budgeted Budgeted CM per unit qty all units sold sales-mix sales-mix variance ( % ) x $ = $ 91,080 ( 198,000 60 4.60 Kostor 70 % - F $135,630 ( % ) x $ 198,000 30 % - 40 6.85 Limba The total sales-mix variance is 44,550 U r Encson Inc in 2017 (Calculate the variance in terms ot contrbution margin) Begin by deternmining the tormula tor the market-share vanance, and then calculate the variance tor Encson Inc tor 2017 Label the vanance decimal places Enter applicat Calculate the market-share vanance whole numbers, not as millions Roune the variance to the nearest whole dollar percentage values as rounded to two places Enter all dol values t ecim Abbrevition Ued: CM-contribution marain) Budgeted Budgetod Actual Actual Markel-share for budgcted mix variance Calculate the market-size variance tor EriIcson Inc in 2017 (Calculate the variance in terms ot contribution maroin) Hegin by determining the tormula tor the market-size vanance and then calculate the variance tor Encson Inc tor 2017 Label the variance as Idollar values to three decimal places, Enter applicable units as whole numbers, not as millions Round the variance to the nearest whole dollar auale () (Ener percentage values as a decimal rounded to two places. X XX Enter h gin) Budgeted Actual Budgeled Budgeted Market-size r budgetod mix ariance Comment on the results because the market size because the actual market share was than The market-share variance is budgeted market share. The market-size variance is
