Q17Q6

Exercise 17-27 (Algo) Industry Volume and Market Share Variances (LO 17-3) Logan Passport Services budgeted sales of 8,700 units of its Basic Visa Service (BVS). This was based on its estimated 5 percent share of this service in the relevant regional market. Actual sales of the BVS for Logan totaled 11,550 units on total industry volume of 154,000 unit for this service. The budgeted contribution margin for BVS is $92 per unit. The octual contribution margin for BVS was $99. Required: Compute the sales activity variance, and break it down into market share variance and the industry volume variance. Note: Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option