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Required: Compute the sales activity variance, and break it down into mark Note: Indicate the effect of each variance by selecting "F" for t mither option.

Required: Compute the sales activity variance, and break it down into mark Note: Indicate the effect of each variance by selecting "F" for t mither option.

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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Appoline Juices budgeted sales of 87.840 units of Grape, assuming that the company would have 30 percent of 292,800 units sold in a particular market. The actual results were 79.820 units sold by Appoline, which represented a 26 percent share of the total market. The budgeted contribution margin is $11.00 per unit. 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 option. Sales activity variance Market share variance
Transcribed Image Text:Appoline Juices budgeted sales of 87.840 units of Grape, assuming that the company would have 30 percent of 292,800 units sold in a particular market. The actual results were 79.820 units sold by Appoline, which represented a 26 percent share of the total market. The budgeted contribution margin is $11.00 per unit. 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 option. Sales activity variance Market share variance
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