D&B Ice Cream budgeted sales of 153,612 units of flavor C, assuming that the company would have 18 percent of 853,400 units sold ina particular market. The actual results were 136,275 units, based on a 15 percent share of a total market of 908,500 units. Thebudgeted contribution margin is $4.30 per unit.Required:Compute the sales activity varlance, and break it down into market share variance and the Industry volume variance. (Indicate theeffect of each varlance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Enteryour answers rounded to the nearest whole dollar.)Sales activity varianceMarket share varianceIndustry volume variance

Sales Activity variance = (actual Units sold-budgeted Units sold) * budgeted Contribution margin per…

D&B Ice Cream budgeted sales of 153,612 units of flavor C, assuming that the company would have 18 percent of 853,400 units sold in a particular market. The actual results were 136,275 units, based on a 15 percent share of a total market of 908,500 units. The budgeted contribution margin is $4.30 per unit. Required: Compute the sales activity variance, and break it down into market share variance and the Industry volume variance. (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. Enter your answers rounded to the nearest whole dollar.) Sales activity variance Market share variance Industry volume variance

D&B Ice Cream budgeted sales of 153,612 units of flavor C, assuming that the company would have 18 percent of 853,400 units sold in a particular market. The actual results were 136,275 units, based on a 15 percent share of a total market of 908,500 units. The budgeted contribution margin is $4.30 per unit. Required: Compute the sales activity variance, and break it down into market share variance and the Industry volume variance. (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. Enter your answers rounded to the nearest whole dollar.) Sales activity variance Market share variance Industry volume variance

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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