Question
Winston Company had two products code named X and Y. The firm had the following budget for August: Product X Product Y Total Sales $
Winston Company had two products code named X and Y. The firm had the following budget for August:
Product X | Product Y | Total | |
---|---|---|---|
Sales | $ 256,000 | $ 440,000 | $ 696,000 |
Variable Costs | 190,000 | 220,000 | 410,000 |
Contribution Margin | $ 66,000 | $ 220,000 | $ 286,000 |
Fixed costs | 50,000 | 108,000 | 158,000 |
Operating Income | $ 16,000 | $ 112,000 | $ 128,000 |
Selling Price per unit | $ 100 | $ 50 |
On September 1, the following actual operating results for August were reported:
Product X | Product Y | Total | |
---|---|---|---|
Sales | $ 270,000 | $ 460,000 | $ 730,000 |
Variable Costs | 149,000 | 184,000 | 333,000 |
Contribution Margin | $ 121,000 | $ 276,000 | $ 397,000 |
Fixed costs | 50,000 | 108,000 | 158,000 |
Operating Income | $ 71,000 | $ 168,000 | $ 239,000 |
Units Sold | 3,000 | 9,000 |
Total industry volume for both products X and Y was estimated to be 130,000 units at the time of the budget. Actual industry volume for the period for products X and Y was 100,000 units.
The firm's market size variance for the period is: (Round your intermediate calculations to 2 decimal places. Round your percentages to 4 decimal places. Example: Round .14447 to .1445 or 14.45%.)
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