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Sales Variances Q225 Kaplan Kit

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  • This topic has 0 replies, 1 voice, and was last updated 6 years ago by hadiraza982.
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  • February 26, 2020 at 11:09 am #563198
    hadiraza982
    Member
    • Topics: 14
    • Replies: 10
    • ☆

    Fort Co produces and sells 3 models of cars The drastic, The Bomber, the Cracker.
    Allof the cars are priced to achieve 10% mark up on standard cost.Fot the month of june
    Fort Co budgeted to sell 30,000 units of drastic and so have 10% market share of the budgeted sales at a price of $10,600 each.Fort Co actually achieved 15% share of the market, though the market had actually contracted by 5%.

    the following information is available for july.

    Drastic Bomber Cracker
    Sales units:
    Budgeted 27,000 15,000 18,000
    Actual 26,000 16,000 14,000
    Budgeted sales Price $10,600 $13,250 $16,960

    Calculate marker share and size variance for drastic

    I figure out the whole answer except this bit where actual market size is calculated in answer it says 30,000/0.1 x0.95=285,000
    i dont know how to figure out this in wasy way, i know this relates to 10% market share and 5% market actually contracted, could you please help me to understand this calculation.

    many thanks

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