Question list Question 1 Question 2 Data table Product Kostor Limba Selling Price $ 17.00 $ $23.00 $ Help me solve this 12.25 15.75 K Print Ember Inc. manufactures and sells two fruit drinks: Kostor and Limba. Ember Inc. prepared the budget for 2020 assuming a 20% market share based on total sales in the Midwest region of the United States. (Click the icon to view the budgeted and actual results.) (Click the icon to view the budgeted and actual sales mix and contribution margin information.) Etext pages Requirement Calculate the market-share and market-size variances for Ember Inc. in 2020. (Calculate all variances in terms of contribution margin.) Comment on the results. Calculate the market-share variance for Ember Inc. in 2020. (Calculate the variance in terms of contribution margin.) Begin by determining the formula for the market-share variance, then calculate the variance for Ember Inc for 2020. Label the variance as favorable (F) or unfavorable (U). (Enter percentage values as a decimal rounded to two places, XX. Enter all dollar values to three decimal places. Enter applicable units as whole numbers, not as millions. Round the variance to the nearest whole dollar. Abbreviation used: CM = contribution margin) Actual The total fruit drinks market was estimated to reach sales of 1.20 million cartons in the region. However, actual total sales volume in the Midwestern region was 1.52 million cartons. Budgeted and actual results for 2020 are as follows: Budget for 2020 Actual for 2020 Variable Cost Cartons Selling Variable Cost Cartons Sold Sold Price per Carton per Carton 144,000 $17.65 $ 13.15 148,200 15.65 79,800 96,000 $24.00 $ market size-units 912000 x ( Done X Actual Get more help market share 0.25 Budgeted market share Reference Kostor $ Limba $ The total sales-volume variance is Kostor ( Kostor Budgeted CM per unit 4.75 Budgeted CM-composite unit ) * for budgeted mix 0.3 ) $ 7.25 Actual qty all (units sold 228,000 Actual qty all units sold 240,000 Limba (228,000 The total sales-quantity variance is * ( x ( x ( 240,000 228,000 x ( Budgeted qty) Budgeted all units sold x Limba 228,000 x( The total sales-mix variance is Actual units sold 148,200 79,800 Actual x(sales-mix % - 65 35 ) X (Click the icon to view the sales variances.) ) X % - % - 5.75 sales-mix % x 60 40 60 40 Static budget units sold 144,000 96,000 % $ % $ Market-share variance Budgeted CM per unit %) X = %) X $ Budgeted %) Budgeted CM sales-mix X per unit 4.75 7.25 262200 4.75 )= ) = )= 7,25 = Sales-volume variance $19,950 F $117,450 U $97,500 U Sales-uantity variance = U = = $34,200 U $34,800 U $69,000 U Sales mix variance $54,150 F $82,650 U $28,500 U Reference Kostor Limba Total Kostor Limba Total Contribution Margin Sales Volume in per Unit Units $ $ $ 4.75 S 7.25 Contribution Margin Sales Volume in per Unit Units 4.50 Budget for 2020 8.35 Print 144,000 96,000 240,000 Actual for 2020 148,200 79,800 228,000 Sales Mix (Based on Units) Clear all 60% 40 Done 100 Sales Mix (Based on Units) % % 65% 35 100 % % Contribution Margin $ $ Contribution Margin $ 684,000 696,000 1,380,000 $ 666,900 666,330 1,333,230 Check answer