- March 31, 2021 at 6:07 am #615556bigyan21Member
- Topics: 3
- Replies: 3
Hi Sir, this is the question from Kaplan’s kit, I got really confused in this question on the calculation of Actual sales. Not sure, how to tackle this question.
Leaf limited has had a mixed year. Its market share has improved two percentage points to 20% but the overall market had contracted by 5% in the same period. The budgeted sales were 504,000 units and the standard contribution was $12 per unit.
What is the level of actual sales?
A Two percentage points up on budget at 510,080 units
B Three percent down overall on budget at 488,880 units
C Three percent up on budget at 519,120 units
D Up by a little over five and a half percent to 532,000 units
Since the overall market had contracted by 5%, that means our market size has been reduced by 5%, so I calculated Revised Sales Quantity by reducing 5% on 504000 units. i.e, 478800 units.
Now How do I calculate Acutal Sales ? and which one is the right answer.
Thankyou.March 31, 2021 at 8:50 am #615577John MoffatKeymaster
- Topics: 56
- Replies: 51583
You will find an explanation in my previous post here:
- You must be logged in to reply to this topic.