Calculate the market-share and market size variances for Emcee Inc. in 2017. Comment on the results.
Calculate the market-share and market size variances for Emcee Inc. in 2017. Comment on the results.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
Topic Video
Question
please avoid handwritten solution thanku
![Emcee Inc. is a manufacturer of fruit drinks in the Midwest region. It makes three different flavors
of fruit drinks (Mango, Papaya, and Pineapple). Emcee prepared the budget for 2017 assuming a
20% market share based on total sales in the Midwest region of the United States of all fruit drinks.
The total fruit drinks market was estimated to reach sales of 1.25 million cartons in the region.
However, actual total sales volume in the Midwest region was 1.5 million cartons. In 2017, Emcee
sold 240,000 cartons of fruit drinks combined.
The budgeted sales volume, prices, and variable costs of the 3 products are provided as under:
Sales
Budgeted
Selling Price
Budgeted Unit
Variable Cost
(S/carton)
Budgeted
Volume
(S/carton)
Mango
Papaya
Pineapple
50.00
57.00
53.00
45.24
51.86
46.55
(in cartons)
37,500
87,500
125,000
Calculate the market-share and market size variances for Emcee Inc. in 2017. Comment on
the results.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd4e51c3b-f01e-4887-a6e6-fba69d6e06c3%2Ffe21b8aa-d1da-43da-871a-d974db9117b0%2Fm3sf2sm_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Emcee Inc. is a manufacturer of fruit drinks in the Midwest region. It makes three different flavors
of fruit drinks (Mango, Papaya, and Pineapple). Emcee prepared the budget for 2017 assuming a
20% market share based on total sales in the Midwest region of the United States of all fruit drinks.
The total fruit drinks market was estimated to reach sales of 1.25 million cartons in the region.
However, actual total sales volume in the Midwest region was 1.5 million cartons. In 2017, Emcee
sold 240,000 cartons of fruit drinks combined.
The budgeted sales volume, prices, and variable costs of the 3 products are provided as under:
Sales
Budgeted
Selling Price
Budgeted Unit
Variable Cost
(S/carton)
Budgeted
Volume
(S/carton)
Mango
Papaya
Pineapple
50.00
57.00
53.00
45.24
51.86
46.55
(in cartons)
37,500
87,500
125,000
Calculate the market-share and market size variances for Emcee Inc. in 2017. Comment on
the results.
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 5 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education