- This topic has 1 reply, 2 voices, and was last updated 9 months ago by .
Viewing 2 posts - 1 through 2 (of 2 total)
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.
OpenTuition recommends the new interactive BPP books for December 2024 exams.
Get your discount code >>
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Market share variance
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.
Actual (Qty * Std Cont or Profit)
Market Share
Revised (New Qty *Std Cont or Profit)
Market Size
Standard (Budget Qty * Std Cont or Profit)