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market size

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › market size

  • This topic has 0 replies, 1 voice, and was last updated 1 year ago by Uzmaan.
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  • December 5, 2023 at 10:35 am #696132
    Uzmaan
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    • Topics: 14
    • Replies: 20
    • ☆

    Jo Co budgeted that it would sell 20,000 units of its main product, based on an expected total market of 250,000 units, but it has the capacity to increase production if necessary. Demand for the product is price-elastic. However, after Jo Co produced its budget, one of its competitors became insolvent.

     

    Which of the following is this most likely to give rise to?

    A favourable sales price variance

    A favourable market share variance

    A favourable market size variance

    An adverse market size variance

    sir, answer was the 2nd one ..can you plz explain sir,why cant it be market size?

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