Question
MK Company has two products that it sells to the same market. Below are its budgeted and actual operating results for the year just completed:
MK Company has two products that it sells to the same market. Below are its budgeted and actual operating results for the year just completed:
Budget | Actual | ||
Unit sales | |||
Product X | 31,500 | 78,000 | |
Product Y | 81,000 | 44,000 | |
Unit contribution margin | |||
Product X | $ | 4.8 | 3.9 |
Product Y | $ | 13 | 14 |
Unit selling price | |||
Product X | $ | 13 | 14 |
Product Y | $ | 30 | 29 |
Industry volume was estimated to be 1,425,000 units at the time the budget was prepared. Actual industry volume for the period was 1,720,000 units. MK measures variances using contribution margin.
The market share variance is: (Round percentage answers to nearest whole percent and other values to 2 decimal places.)
$75,400 unfavorable. |
$91,990 unfavorable. |
$171,900 unfavorable. |
$184,040 unfavorable. |
$224,700 unfavorable. |
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