Question
Impact Window Company makes storm-resistant windows. The company's sales manager estimated the sales volume to be 160,000 windows. As a result of an increase in
Impact Window Company makes storm-resistant windows. The company's sales manager estimated the sales volume to be 160,000 windows. As a result of an increase in the projected number of hurricanes this year, the total demand for this type of window increased from 800,000 windows to 1,000,000 windows. At the same time the company's market share fell from 20 percent to 15 percent. The company's standard contribution margin is $15.00 per window. What is the company's industry volume variance?
$600,000 favorable
$600,000 unfavorable
$500,000 favorable
$500,000 unfavorable
None of these.
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