Profitability Analysis Score: 0 of 8 Acton Slate Inc. (ASI) produces tablet computers. ASI markets three different handheld models. SlatePro is a souped-up version for the executive on the go; Slate is a consumer-oriented version; and SlateLite is a stripped-down version for the young adult market. Acton Slate's senior vice president of marketing prepared his budget at the beginning of the third quarter assuming a 40% market share based on total sales. The total tablet market was estimated by Foolinstead Research to reach sales of 237,500 units worldwide in the third quarter. However, actual sales in the third quarter were 500,000 units. Budgeted and actual operating data for the company's third quarter of 2018 are as follows: (Click the icon to view the budgeted data.) E!! (Click the icon to view the actual data.) Required Requirement 1. Calculate the market share and market-size variances for ASI in the third quarter of 2018 (calculate all variances in terms of contribution margins). Begin by determining the formula for the market share variance, and then calculate the variance for Acton Slate in the third quarter of 2018 (calculate all variances in terms of contribution margins). Label the variance as favourable (F) or unfavourable (U). (For amounts entered into the formula, enter all amounts to two decimal places except for units. Round your final answer to the nearest whole dollar.) Actual Budgeted Actual Budgeted CM-composite unit Market-share market share market share ) market size units for budgeted mix variance 0.2 0.25 ) X F Now determine the formula for the market-size variance, and then calculate the variance for the third quarter of 2018 (calculate all variances in terms of contribution margins). Label the variance as favourable (F) or unfavourable (U). (For amounts entered into the formula, enter all amounts to two decimal places except for units. Round your final answer to the nearest whole dollar.) Actual Budgeted Budgeted Budgeted CM-composite unit Market-size market share market share )x market size--units for budgeted mix variance ) x Requirement 2. Explain what happened based on the market-share and market-size variances. Choose from any list or enter any number in the input fields and then click Check Answer. Clear All Check Answer esident of marketing prepared his budget at the beginning of the third quarter assuming a 40% market share based on total sales. The total tablet r were 500,000 units. til Budgeted data Budgeted Operating Data, Third Quarter 2018 th on margins). Selling Variable Cost Contribution Sales Volume Contribution Price per Unit Margin per Unit Dollars in Units or el ti all variances in terms of al places except for units SlatePro $ 375 $ 181 $ 194 $ 9,500 1,843,000 274 Slate 93 181 36,100 49,400 6,534,100 3,754,400 Slate Lite 144 76 68 95,000 $ 12,131,500 f contribution margins). its. Round your final af bur ble Print Done ) X nod haced on the market share and market-size variances. rvice president of marketing prepared his budget at the beginning of the third quarter assuming a 40% market share based on total sales. The total tablet ted by For were 500,000 units. al operati X to view thi Actual data Actual Operating Data, Third Quarter 2018 alculate the Selling Variable Cost on margins). Contribution Sales Volume Contribution Price per Unit Margin per Unit in Units Dollars ng the for 3). Label swer to t all viances in terms of al places except for units SlatePro $ 375 $ 175 $ 200 $ 2,200,000 Slate 286 96 190 11,000 44,000 55,000 8,360,000 1,760,000 SlateLite 102 70 32 110,000 $ 12,320,000 contribution margins). its. Round your final formula f as favour est whole Print Done - plain what happened based on the market share and market-size variances. Acton Slate Inc. (ASI) produces tablet computers. ASI markets three different handheld models. SlatePro is a souped-up version for the executive on the go; Slate is a consumer-oriented version; and SlateLite is a stripped-down version for the young adult market. Acton Slate's senior vice president of marketing prepared his budget at the beginning of the third quarter assuming a 40% market share based on total sales. The total tablet market was estimated by Foolinstead Research to reach sales of 237,500 units worldwide in the third quarter. However, actual sales in the third quarter were 500,000 units. Budgeted and actual operating data for the company's third quarter of 2018 are as follows: B (Click the icon to view the budgeted data.) (Click the icon to view the actual data.) Required ..... contribution margins). Label the variance as favourable (F) or unfavourable (U). (For amounts entered into the formula, enter all amounts to two decimal places except for units. Round your final answer to the nearest whole dollar.) Actual Market-share Budgeted market share Actual Budgeted CM-composite unit ) x market size-units X for budgeted mix market share variance F 0.2 0.25 ) x Now determine the formula for the market-size variance, and then calculate the variance for the third quarter of 2018 (calculate all variances in terms of contribution margins). Label the variance as favourable (F) or unfavourable (U). (For amounts entered into the formula, enter all amounts to two decimal places except for units. Round your final answer to the nearest whole dollar.) Market-size Budgeted CMcomposite unit Actual Budgeted Budgeted ) x market size units variance market share for budgeted mix market share U = ) x Requirement 2. Explain what happened based on the market-share and market-size variances. sales-quantity variance of $ the overall decrease in the total market size results in a(n) favourable While the market share increased Choose from any list or enter any number in the input fields and then click Check Answer. Cloor A Check