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Aboyne Slate Inc. produces tablet computers. ASI markets three different handheld models. SlatePro is a souped-up version for the executive on the go; Slate is a consumer-oriented version, and SlateLite is a stripped-down version for the young adult market.

Aboyne Slate's senior vice president of marketing prepared his budget at the beginning of the third quarter assuming a 25%market share based on total sales. The total tablet market was estimated by Foolinstead Research to reach sales of 400,000 units worldwide in the third quarter. However, actual sales in the third quarter were 540,000units.

Budgeted and actual operating data for the company's third-quarter of 2018 are as follows:

Actual Operating Data, Third Quarter 2018 Budgeted Operating Data, Third Quarter 2018 Selling Variable Cost Contribution Sales Volume Contribution Variable Cost Contribution Sales Volume Contribution Selling Price Price per Unit Margin per Unit in Units Dollars per Unit Margin per Unit in Units Dollars SlatePro $ 375 $ 179 $ 196 8,640 $ SlatePro $ 373 $ 182 $ 191 12,500 $ Slate 284 93 191 1,693,440 8,457,480 2,037,960 Slate 267 96 44,280 55,080 171 37,500 50,000 2,387,500 6,412,500 3,750,000 SlateLite 110 73 37 SlateLite 145 70 75 (A 108,000 $ 12,188,880 100,000 $ 12,550,000 Print Done Done Print Done Requirement 1. Calculate the market share and market-size variances for ASI in the third quarter of 2018 (calculate all variances in terms of contribution margins). Begin by determining the formula for the market share variance, and then calculate the variance for Aboyne Slate in the third quarter of 2018 (calculate all variances in terms of contribution margins). Label the variance as favourable (F) amounts entered into the formula, enter all amounts to two decimal places except for units. Round your final answer to the nearest whole dollar.) Budgeted Actual Budgeted CM-composite unit Market-share market share market share ) x market size-units for budgeted mix variance 0.2 0.25 540,000 $ 125.50 $ 3,388,500 u Actual X Now determine the formula for the market-size variance, and then calculate the variance for the third quarter of 2018 (calculate all variances in terms of contribution margins). Label the variance as favourable (F) or unfavourable (U). (Fo formula, enter all amounts to two decimal places except for units. Round your final answer to the nearest whole dollar.) Actual Budgeted Budgeted Required Budgeted CMcomposite unit Market-size (market size-units market sizeunits ) x market share for budgeted mix variance ) x X 1. Calculate the market-share and market-size variances for ASI in the third quarter of 2018 (calculate all variances in terms of contribution margins). 2. Explain what happened based on the market share and market-size variances. 3. Calculate the actual market size, in units, that would have led to no market-size variance again using budgeted contribution margin per unit). Use this Choose from any list or enter any number in the input fields and then click Check Answer. market-size figure to calculate the actual market share that would have led to a zero market-share variance