Pregunta 5.1

A company sells only product A. The following information is available:

Estimated purchase cost of A: $200/u

Budgeted selling and administrative expenses are $200,000 per year The company plans to sell 2,000 units of A. Estimated selling price of A/unit: $500 In reality, the company sells 1,500 units of A at a unit price of $550. The actual Purchase Cost of product A was $210/unit Selling and administrative expenses are equal to those budgeted Projected sales for the total market of A were 20,000 units. Total market actual sales for A were 19,000 units. The variation due to the change in the market share of product A for this company is:

Please select an alternative:

A. $120,000(D)

B. $30,000(D)

C.$90,000(D)

D. None of the above