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John Moffat.
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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Market Size & Market Share [Variance Calculation]
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.
You will find an explanation in my previous post here: