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Market Size & Market Share [Variance Calculation]

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Market Size & Market Share [Variance Calculation]

  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by John Moffat.
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  • March 31, 2021 at 6:07 am #615556
    bigyan21
    • 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.

    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

    My Calculation:
    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.

    Please help.
    Thankyou.

    March 31, 2021 at 8:50 am #615577
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 49583
    • ☆☆☆☆☆

    You will find an explanation in my previous post here:

    https://opentuition.com/topic/market-size-variance/

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