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Compute the sales activity variance, and break it down into market share variance and the industry volume variance.

Compute the sales activity variance, and break it down into market share variance and the industry volume variance.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Exercise 17-27 (Algo) Industry Volume and Market Share Variances (LO 17-3) Logan Passport Services budgeted sales of 8,500 units of its Basic Visa Service (BVS). This was based on its estimated 5 percent share of this service in the relevant regional market. Actual sales of the BVS for Logan totaled 11,450 units on total industry volume of 150,000 unit for this service. The budgeted contribution margin for BVS is $90 per unit. The actual contribution margin for BVS was $97. Required: Compute the sales activity variance, and break it down into market share variance and the industry volume variance. Note: Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Sales activity variance Market share variance Industry volume variance
Transcribed Image Text:Exercise 17-27 (Algo) Industry Volume and Market Share Variances (LO 17-3) Logan Passport Services budgeted sales of 8,500 units of its Basic Visa Service (BVS). This was based on its estimated 5 percent share of this service in the relevant regional market. Actual sales of the BVS for Logan totaled 11,450 units on total industry volume of 150,000 unit for this service. The budgeted contribution margin for BVS is $90 per unit. The actual contribution margin for BVS was $97. Required: Compute the sales activity variance, and break it down into market share variance and the industry volume variance. Note: Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Sales activity variance Market share variance Industry volume variance
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