20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for March and June 2025 exams.
Get your discount code >>

Sales Market Size Variance

This topic has 1 reply, 2 voices, and was last updated 4 years ago by John Moffat.

Viewing 2 posts - 1 through 2 (of 2 total)

Author
Posts
August 26, 2020 at 6:20 pm #582200
thuongha
Member
- Topics: 22
- Replies: 15
“Leaf Ltd has had a mixed year. Its market share has improved 2% to 20% but the overall market had contracted by 5% in the same period. Budgeted sales were 504000 units and standard contribution was $12 per unit. What is the sales market size variance?”
Hi sir, the answered for this was $302400 adverse but I couldn’t really understand Kaplan’s explanation. Could you help with this please?
Thank you so much.
August 27, 2020 at 7:32 am #582251
John Moffat
Keymaster
- Topics: 57
- Replies: 54655
They budgeted on selling 504,000 units.
The market as a whole has reduced by 5% and so on this alone they would expect their sales to reduce by 5% x 504,000 = 25,200 units.
This would lose them 25,200 x $12 = $302,400.
Author
Posts

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic.