Budgeted Operating Data, Third Quarter 2017 Variable Cost Selling Price per Unit Mobile Pro $380 $185 MobileCE 274 97 MobileKid 146 65 Contribution Margin per Unit $195 177 81 Sales Volume in Units 5,550 44,400 61,050 111,000 Actual Operating Data, Third Quarter 2017 Variable Cost Selling Price per Unit Mobile Pro $351 $180 Mobile CE 284 92 Mobile Kid 115 73 Contribution Margin per Unit $171 Sales Volume in Units 4,600 49,450 60,950 115,000 192 42 14-39 Market-share and market-size variances (continuation of 14-38). Space Infonautics' senior vice president of marketing prepared his budget at the beginning of the third quarter assuming a 25% market share based on total sales. Star Research estimated that the total handheld-organizer market would reach sales of 444,000 units worldwide in the third quarter. However, actual sales in the third quarter were 500,000 units. 1. Calculate the market share and market-size variances for Space Infonautics in the third quarter of 2017 (calculate all variances in terms of contribution margins). 2 Explain what happened based on the market-share and market-size variances. 3. Calculate the actual market size, in units, that would have led to no market-size variance (again using budgeted contribution margin per unit). Use this market-size figure to calculate the actual market share that would have led to a zero market-share variance. Budgeted Operating Data, Third Quarter 2017 Variable Cost Selling Price per Unit Mobile Pro $380 $185 MobileCE 274 97 MobileKid 146 65 Contribution Margin per Unit $195 177 81 Sales Volume in Units 5,550 44,400 61,050 111,000 Actual Operating Data, Third Quarter 2017 Variable Cost Selling Price per Unit Mobile Pro $351 $180 Mobile CE 284 92 Mobile Kid 115 73 Contribution Margin per Unit $171 Sales Volume in Units 4,600 49,450 60,950 115,000 192 42 14-39 Market-share and market-size variances (continuation of 14-38). Space Infonautics' senior vice president of marketing prepared his budget at the beginning of the third quarter assuming a 25% market share based on total sales. Star Research estimated that the total handheld-organizer market would reach sales of 444,000 units worldwide in the third quarter. However, actual sales in the third quarter were 500,000 units. 1. Calculate the market share and market-size variances for Space Infonautics in the third quarter of 2017 (calculate all variances in terms of contribution margins). 2 Explain what happened based on the market-share and market-size variances. 3. Calculate the actual market size, in units, that would have led to no market-size variance (again using budgeted contribution margin per unit). Use this market-size figure to calculate the actual market share that would have led to a zero market-share variance