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Question 61 Spike in BPP kit:
Please give me the formula of these variance.
I confuse betweem the way to calculate them in BPP and in the notes of my lecturer.
In the note, my lecturer wrote:
Market-size variance = ( Actual market size in units – Budgeted market size in units) * budgeted market share * budgeted margin per unit.
But in the answer of BPP it multiplise with standard contribution.The standard contribution per unit means the same thing as the budgeted margin per unit.
I have one more question. Budgeted market share is calculated as a percentage of total market share?
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