"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.
Ask the Tutor ACCA PM
Sales Market Size Variance
6y ago#1They 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.
Sign into reply to this topic.