For April, Tom and Lynda have budgeted to obtain a 15 share in their target market They estimate the actual size of the market at 6,075 memberships Their budgeted contribution margin per member is $65, and the actual contribution was $62 Moreover, their budgeted sales volume is 950 members and the ...

To compute the market size and share variances we need data on budgeted market size and actual marke ...

For April, Tom and Lynda have budgeted to obtain a 15% share in their target market. They

Question:

For April, Tom and Lynda have budgeted to obtain a 15% share in their target market. They estimate the actual size of the market at 6,075 memberships. Their budgeted per member is $65, and the actual contribution was $62. Moreover, their budgeted sales volume is 950 members and the actual sales volume was 975 members.

Required:
Calculate the market size and market share variances.

Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...