Breeden Electric budgeted for the sale of 20,000 electric cars at a budgeted contribution margin of $500
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Question:
Breeden Electric budgeted for the sale of 20,000 electric cars at a budgeted contribution margin of $500 per car. The forecast of 20,000 was based on an expected market size of 50,000 cars and a 40% market share. Breeden Electric was able to achieve an actual market share of 35% and the overall market for electric cars increased by 20%.
The market share variance for operating income for Breeden Electric was
$1.5 Mn (unfavorable) | ||
$2.0 Mn (unfavorable) | ||
$1.5 Mn (favorable) | ||
$1.25 Mn (favorable) | ||
$2.0 Mn (favorable) | ||
$1.25 Mn (unfavorable) |
Related Book For
College Mathematics for Business Economics Life Sciences and Social Sciences
ISBN: 978-0321614001
12th edition
Authors: Raymond A. Barnett, Michael R. Ziegler, Karl E. Byleen
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