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Market share variance

Ttit2y ago
Fort Co. produces and sells three models of family cars. The basic model (the drastic), an upgraded model (the bomber), and a deluxe model (the cracker).All of the cars are priced to achieve a 6% markup on the standard cost.For the month of June, Fort Co. budgeted to sell 30000 units of the Drastic and so have 10% market share of the budgeted 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%. How do I calculate the market share variance, please? The formula I used is (actual sales-revised sales)*std contr.
IAW3005IAW3005Tutor2y ago#1
Actual (Qty * Std Cont or Profit) Market Share Revised (New Qty *Std Cont or Profit) Market Size Standard (Budget Qty * Std Cont or Profit)
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