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Hi Sir.I am stuck in a kit question. I am posting my question here.I would really appreciate if you help me in this question. My question is
Fort Co. Produces and sell three models of family car.The basic model (the drastic), an upgraded model (the bomber) and a deluxe model ( the cracker).Allof the cars are priced to achieve a 6% mark up on standard cost.For the month of June, Fort Co. budgetd to sell 30000 units of the Drastic and so have 10 % market share of the budgetd sales at a price of $10600 each. Fort Co. actually achieved a 15 % share of the market, though the market has actually contracted by 5%.
Calculate the market share nd size variance for the Drastic.
You know from the budget that they expected the market to be 30,000/10% = 300,000.
The market contracted by 5% and so the actual market size was 95% x 300,000 = 285,000.
Their share was 15% and so they actually sold 15% x 285,000 = 42,750Can you please help me figure out the sales mix variance and sales quantity variance for this question?
Thank you
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