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When calculating market size (Planning ) and market size (operational) sales volume variance respectively.
Market size – 30000/.1 = 300000
After contract and revised units – 300000*95*15 – 42750
Market size is (Revised – Budgeted)* Std P/cont (28500-30000) and operational (Actual – revised) *Std cont – (42750- 26000) *600Checking at the solution in Kaplaan, variance is (opposite)(Bud – Revised ) market size and same goes for operational (Revised – Actual)
Please clear my doubt where i went wrongMarket share is Actual to Revised because any difference is due to the share of the market achieved being different ie that you actually have sold larger or smaller (qty ) that is once you have revised/amended your belief of what you can achieve .
Market size is what you can achieve realistically, what you budgeted the size to be compared to what you have seen it grow or contract to. So you revise/ amend.
Actual
This gives share
Revised
This gives size
Budget
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