Soda- King prepared the budget for 2014 assuming a 12.5% market share based on total sales in the western region of the United States. The total soft drinks market was estimated to reach sales of 10 million cartons in the region. However, actual total sales volume in the western region was 12.3 million cartons.

In Exercise 14-25, Soda- King manufactures and sells two soft drinks: Kola and Limor. Budgeted and actual results for 2014 are as follows:

Required
Calculate the market- share and market-size variances for Soda-King in 2014. (Calculate all variances in terms of contribution margin.) Comment on theresults.

Transcribed Image Text:

Budget for 2014 Actual for 2014 Product Price per Carton Kola $10.00 Limor Selling Variable Cost Cartons Selling Variable Cost Cartons per Carton o Price per Carton 500,000 $10.10 $5.50 $5.75 504,300 7.50 $4.00 750,000 7.75 370 725,700