Please find actual market share percentage Edgee Inc. manufactures and sells two fruit drinks: Kostor and Limba.
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Please find actual market share percentage
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Edgee Inc. manufactures and sells two fruit drinks: Kostor and Limba. Edgee Inc. prepared the budget for 2017 assuming a 25% market share based on total sales in the Midwest region of the United States. (Click the icon to view the budgeted and actual results.) (Click the icon to view the budgeted and actual sales mix and contribution margin information.) (Click the icon to view the sales variances.) Calculate the market-share and market-size variances for Edgee Inc. in 2017. (Calculate all variances in terms of contribution margin.) Comment on the results. Calculate the market-share variance for Edgee Inc. in 2017. (Calculate the variance in terms of contribution margin.) Begin by determining the formula for the market-share variance, then calculate the variance for Edgee Inc for 2017. Label the variance as favorable (F) or unfavorable (U). (Enter percentage values as a decimal rounded to two places, .XX. Enter all dollar values to three decimal places. Enter applicable units as whole numbers Actual Budgeted CM-composite unit Budgeted market share. market share for budgeted mix 6.40 Actual market size-units x ( x ( 1,520,000 Reference Kostor $ Limba $ The total sales-volume variance is Budgeted CM per unit 5.50 Kostor ( Kostor 7.75 Actual ( qty all units sold 304,000 304,000 Limba ( The total sales-quantity variance is Actual qty all units sold x ( 304,000 X ( 304,000 Limba The total sales-mix variance is x ( .30 x ( x ( x( Budgeted qty all units sold 320,000 Actual units sold 197,600 106,400 320,000 Actual sales-mix 65 35 0.25 ) x ) X ) x % - % - % - Print ) × $ Budgeted sales-mix 60 40 Budgeted sales-mix 60 40 Static budget units sold 192,000 128,000 Done % X % x $ % x $ %) X %) x $ %) x $ Budgeted CM per unit 5.50 7.75 Budgeted CM per unit 5.50 7.75 $ = $ = ) = ) = $ 30,800 F $ 167,400 U = Market-share variance Sales-volume variance = = $52,800 $ 49,600 $ 136,600 U U Sales-quantity variance U Sales-mix variance = $ 83,600 F $ 117,800 U 102,400 U U 34,200 U Reference Kostor Limba Total Kostor Limba Total Contribution Margin per Unit $ $ 5.50 7.75 Contribution Margin per Unit $ $ 5.15 8.85 Budget for 2017 Sales Volume in Units 192,000 128,000 320,000 Print Sales Volume in Units Actual for 2017 Sales Mix (Based on Units) 197,600 106,400 304,000 60% 40 Done 100 Sales Mix (Based on Units) % 100 % 65% 35% % $ $ $ Contribution Margin 1,056,000 992,000 2,048,000 Contribution Margin 1,017,640 941,640 1,959,280 Data Table The total fruit drinks market was estimated to reach sales of 1.28 million cartons in the region. However, actual total sales volume in the Midwestern region was 1.52 million cartons. Budgeted and actual results for 2017 are as follows: Budget for 2017 Actual for 2017 Selling Variable Cost Cartons Selling Price Sold Price per Carton Kostor $12.00 $ 192,000 $ 12.60 $ Limba $18.00 $ 128,000 $19.20 $ Product 6.50 10.25 Print Done Variable Cost Cartons Sold per Carton 7.45 197,600 10.35 106,400 Edgee Inc. manufactures and sells two fruit drinks: Kostor and Limba. Edgee Inc. prepared the budget for 2017 assuming a 25% market share based on total sales in the Midwest region of the United States. (Click the icon to view the budgeted and actual results.) (Click the icon to view the budgeted and actual sales mix and contribution margin information.) (Click the icon to view the sales variances.) Calculate the market-share and market-size variances for Edgee Inc. in 2017. (Calculate all variances in terms of contribution margin.) Comment on the results. Calculate the market-share variance for Edgee Inc. in 2017. (Calculate the variance in terms of contribution margin.) Begin by determining the formula for the market-share variance, then calculate the variance for Edgee Inc for 2017. Label the variance as favorable (F) or unfavorable (U). (Enter percentage values as a decimal rounded to two places, .XX. Enter all dollar values to three decimal places. Enter applicable units as whole numbers Actual Budgeted CM-composite unit Budgeted market share. market share for budgeted mix 6.40 Actual market size-units x ( x ( 1,520,000 Reference Kostor $ Limba $ The total sales-volume variance is Budgeted CM per unit 5.50 Kostor ( Kostor 7.75 Actual ( qty all units sold 304,000 304,000 Limba ( The total sales-quantity variance is Actual qty all units sold x ( 304,000 X ( 304,000 Limba The total sales-mix variance is x ( .30 x ( x ( x( Budgeted qty all units sold 320,000 Actual units sold 197,600 106,400 320,000 Actual sales-mix 65 35 0.25 ) x ) X ) x % - % - % - Print ) × $ Budgeted sales-mix 60 40 Budgeted sales-mix 60 40 Static budget units sold 192,000 128,000 Done % X % x $ % x $ %) X %) x $ %) x $ Budgeted CM per unit 5.50 7.75 Budgeted CM per unit 5.50 7.75 $ = $ = ) = ) = $ 30,800 F $ 167,400 U = Market-share variance Sales-volume variance = = $52,800 $ 49,600 $ 136,600 U U Sales-quantity variance U Sales-mix variance = $ 83,600 F $ 117,800 U 102,400 U U 34,200 U Reference Kostor Limba Total Kostor Limba Total Contribution Margin per Unit $ $ 5.50 7.75 Contribution Margin per Unit $ $ 5.15 8.85 Budget for 2017 Sales Volume in Units 192,000 128,000 320,000 Print Sales Volume in Units Actual for 2017 Sales Mix (Based on Units) 197,600 106,400 304,000 60% 40 Done 100 Sales Mix (Based on Units) % 100 % 65% 35% % $ $ $ Contribution Margin 1,056,000 992,000 2,048,000 Contribution Margin 1,017,640 941,640 1,959,280 Data Table The total fruit drinks market was estimated to reach sales of 1.28 million cartons in the region. However, actual total sales volume in the Midwestern region was 1.52 million cartons. Budgeted and actual results for 2017 are as follows: Budget for 2017 Actual for 2017 Selling Variable Cost Cartons Selling Price Sold Price per Carton Kostor $12.00 $ 192,000 $ 12.60 $ Limba $18.00 $ 128,000 $19.20 $ Product 6.50 10.25 Print Done Variable Cost Cartons Sold per Carton 7.45 197,600 10.35 106,400
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Horngrens Cost Accounting A Managerial Emphasis
ISBN: 978-0134475585
16th edition
Authors: Srikant M. Datar, Madhav V. Rajan
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