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Leaf limited has had a mix year. Its market share has improved two percentage point to 20% but the overall market had contracted by 5% in the same period. The budgeted sale were 504000 unit and standard contribution was $12 per unit.
The sale market share variance?
The sale market size variance?Sir i dont understand how they have done calculation..
The budgeted on sales of 504,000 and this must have been 18% (20 – 2) of the sales expected in the market as a whole.
Therefore they must have expected sales in the market as a whole of 504,000/18% = 2,800,000.The market contracted by 5% and therefore the actual total market sales must have been 95% x 2,800,000 = 2,660,000.
There actual share of the market was 20%, and therefore their actual sales must have been 20% x 2,660,000 = 532,000 units.
The rest of the answer should not make sense 🙂
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