Question
The Sasita Corporation manufactures two types of vacuum cleaners, the Zenith for commercial building use and the House-Helper for residences. Budgeted and actual operating data
The Sasita Corporation manufactures two types of vacuum cleaners, the Zenith for commercial building use and the House-Helper for residences. Budgeted and actual operating data for the year 2019 were as follows:
| Static Budget | Zenith | House-Helper | Total |
| Number sold | 5,000 | 20,000 | 25,000 |
| Contribution margin | $1,500,000 | $3,000,000 | $4,500,000 |
| Actual Results | Zenith | House-Helper | Total |
| Number sold | 4,000 | 28,000 | 32,000 |
| Contribution margin | $1,280,000 | $3,920,000 | $5,200,000 |
Prior to the beginning of the year, a consulting firm estimated the total volume for vacuum cleaners of the Zenith and House-Helper category to be 250,000 units, but actual industry volume was 256,000 units.
What is the market-size variance?
$96,000 F
$108,000 F
$360,000 U
$1,152,000 F
$1,260,000 F
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Information Technology Auditing An Evolving Agenda
Authors: Jagdish Pathak
1st Edition
3642060579, 978-3642060571
