T114-5 (similar to) Question Help 0 Forever Corp. buys and sells two types of sunglasses in New York: Duma and Kool. Budgeted and actual results for 2017 are as follows: (Click the icon to view the budgeted and actual results.) (Click the icon to view the budgeted and actual CM.) Forever Corp. prepared the budget for 2017 assuming a 16% market share based on total sales of 1,468,750 units in New York. However, actual total sales volume in New York was 2,650,000 units. Requirement Calculate the market share and market-size variances for Forever Corp. in 2017. Calculate all variances in terms of contribution margin. Comment on the results. Reference Data Table X Variable Cost CM per Units Sales Selling Price per unit unit Sold Mix CM Selling (Budgeted) Duma Product $ 28 $ 18 $ 10 98,700 136,300 42 % $ 58 987,000 1,226,700 Budget for 2017 Variable Cost Selling per Unit Units Sold Price 18 98.700 $ 24 12 136,300 $ 26 Price $ 28 $ 21 Duma Actual for 2017 Variable Cost per Unit Units Sold $ 19 97,520 $ 13 114,480 Kool 21 12 9 Kool 235.000 100 % $ 2.213.700 Total Selling Variable Cost CM per Units Sales Print Done (Actual) Price per unit unit Sold Mix CM Duma $ 24 S 19 ? $ 5 97,520 46 % $ 54 487,600 1,488,240 Kool 26 13 13 114,480 All Check Answer 212.000 100 $ Total 1,975,840 T114-5 (similar to) Question Help 0 Forever Corp. buys and sells two types of sunglasses in New York: Duma and Kool. Budgeted and actual results for 2017 are as follows: (Click the icon to view the budgeted and actual results.) (Click the icon to view the budgeted and actual CM.) Forever Corp. prepared the budget for 2017 assuming a 16% market share based on total sales of 1,468,750 units in New York. However, actual total sales volume in New York was 2,650,000 units. Requirement Calculate the market share and market-size variances for Forever Corp. in 2017. Calculate all variances in terms of contribution margin. Comment on the results. Reference Data Table X Variable Cost CM per Units Sales Selling Price per unit unit Sold Mix CM Selling (Budgeted) Duma Product $ 28 $ 18 $ 10 98,700 136,300 42 % $ 58 987,000 1,226,700 Budget for 2017 Variable Cost Selling per Unit Units Sold Price 18 98.700 $ 24 12 136,300 $ 26 Price $ 28 $ 21 Duma Actual for 2017 Variable Cost per Unit Units Sold $ 19 97,520 $ 13 114,480 Kool 21 12 9 Kool 235.000 100 % $ 2.213.700 Total Selling Variable Cost CM per Units Sales Print Done (Actual) Price per unit unit Sold Mix CM Duma $ 24 S 19 ? $ 5 97,520 46 % $ 54 487,600 1,488,240 Kool 26 13 13 114,480 All Check Answer 212.000 100 $ Total 1,975,840
