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Pottery Company produces two ceramic products: a vase and a bowl. The following table summarizes the sales information for the most recent period. Part a:
Pottery Company produces two ceramic products: a vase and a bowl. The following table summarizes the sales information for the most recent period.
Part a:
What is the sales mix variance for the Bowl?
a. $19,600 unfavourable.
b. $5,600 unfavourable.
c. $12,600 favourable.
d. None of the above
Part b:
What is the market size variance?
a. $13,000 favourable.
b. $18,000 favourable.
c. $38,750 favourable.
d. None of the above.
Part c:
What is the market share variance?
a. $12,500 unfavourable.
b. $20,150 unfavourable.
c. $31,250 unfavourable.
d. None of the above
Planning Unit Sales Actual Unit Sales Contribution Margin per unit Planned total market unit sales Actual total market unit sales Vase 1000 1400 $50 120000 130000 Bowl 1500 1400 $70 80000 120000 Planning Unit Sales Actual Unit Sales Contribution Margin per unit Planned total market unit sales Actual total market unit sales Vase 1000 1400 $50 120000 130000 Bowl 1500 1400 $70 80000 120000Step by Step Solution
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