Question:
Industry Volume and Market Share Variances
Kay's Auto Products budgeted sales of 50,000 units of product B, assuming that the company would have 20 percent of 250,000 units sold in a particular market. The actual results were 45,000 units, based on a 15 percent share of a total market of 300,000 units. The budgeted contribution margin is $4 per unit.
Required
Compute the sales activity variance, and break it down into market share and industry volume.