Please help with each of the requirements! Thanks in advance!
Seattle Infonautics, Inc., produces handheld Windows CE - compatible organizers. Seattle Infonautics markets three different handheld models; PalmPro is a souped-up version for the executive on the go, PalmCE is a consumer-oriented version, and PalmKid is a stripped-down version for the young adult market. (Click the icon to view additional information.) Budgeted and actual operating data for the company's third quarter of 2017 are as follows: B (Click the icon to view the budgeted data.) E (Click the icon to view the actual data.) Read the requirements. Requirement 1. Calculate the market share and market-size variances for Seattle Infonautics in the third quarter of 2017 (calculate all variances in terms of contribution margins). (Abbreviation used: CM = contribution margins) Begin by determining the formula for the market share variance, then calculate the variance for Seattle Infonautics in the third quarter of 2017. Label the variance as favorable (F) or unfavorable (U). (For amounts entered into the formula, enter all amounts to two decimal places except for units.) Actual Budgeted Actual Market-share Budgeted for budgeted mix variance - X - X Data Table Data Table Actual Operating Data, Third Quarter 2017 Selling Variable Cost Contribution Price Margin per Unit PalmPro $ 353 $ 184 $ 169 Sales Volume in Units per Unit Budgeted Operating Data, Third Quarter 2017 Variable Sales Contribution Volume Selling Price Unit Margin per Unit in Units PalmPro $ 376 $ 182 $ 194 13,580 Cost per 5,500 PalmCE 290 94 196 47,300 57,200 PalmCE 273 93 180 PalmKid 120 74 46 35,890 47,530 PalmKid 143 69 74 110,000 Total 97,000 Total Print Done Print Done - X - X More Info i Requirements Seattle Infonautics' senior vice president of marketing prepared his budget at the beginning of the third quarter assuming a 25% market share based on total sales. Foolinstead Research estimated that the total handheld-organizer market would reach sales of 388,000 units worldwide in the third quarter. However, actual sales in the third quarter were 500,000 units. 1. Calculate the market share and market-size variances for Seattle Infonautics in the third quarter of 2017 (calculate all variances in terms of contribution margins). 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 variance (again using budgeted contribution margin per unit). Use this market-size figure to calculate the actual market share that would have led to a zero market-share variance. Print Done Print Done Seattle Infonautics, Inc., produces handheld Windows CE - compatible organizers. Seattle Infonautics markets three different handheld models; PalmPro is a souped-up version for the executive on the go, PalmCE is a consumer-oriented version, and PalmKid is a stripped-down version for the young adult market. (Click the icon to view additional information.) Budgeted and actual operating data for the company's third quarter of 2017 are as follows: B (Click the icon to view the budgeted data.) E (Click the icon to view the actual data.) Read the requirements. Requirement 1. Calculate the market share and market-size variances for Seattle Infonautics in the third quarter of 2017 (calculate all variances in terms of contribution margins). (Abbreviation used: CM = contribution margins) Begin by determining the formula for the market share variance, then calculate the variance for Seattle Infonautics in the third quarter of 2017. Label the variance as favorable (F) or unfavorable (U). (For amounts entered into the formula, enter all amounts to two decimal places except for units.) Actual Budgeted Actual Market-share Budgeted for budgeted mix variance - X - X Data Table Data Table Actual Operating Data, Third Quarter 2017 Selling Variable Cost Contribution Price Margin per Unit PalmPro $ 353 $ 184 $ 169 Sales Volume in Units per Unit Budgeted Operating Data, Third Quarter 2017 Variable Sales Contribution Volume Selling Price Unit Margin per Unit in Units PalmPro $ 376 $ 182 $ 194 13,580 Cost per 5,500 PalmCE 290 94 196 47,300 57,200 PalmCE 273 93 180 PalmKid 120 74 46 35,890 47,530 PalmKid 143 69 74 110,000 Total 97,000 Total Print Done Print Done - X - X More Info i Requirements Seattle Infonautics' senior vice president of marketing prepared his budget at the beginning of the third quarter assuming a 25% market share based on total sales. Foolinstead Research estimated that the total handheld-organizer market would reach sales of 388,000 units worldwide in the third quarter. However, actual sales in the third quarter were 500,000 units. 1. Calculate the market share and market-size variances for Seattle Infonautics in the third quarter of 2017 (calculate all variances in terms of contribution margins). 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 variance (again using budgeted contribution margin per unit). Use this market-size figure to calculate the actual market share that would have led to a zero market-share variance. Print Done Print Done
