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Sales Variances Q225 Kaplan Kit

HHadi6y ago
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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