Market-share and market-size variances (continuation of 14-27). Emcee Inc. prepared the budget for 2017 assuming a 20% market share based on total sales in the Midwest region of the United States. 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 western region was 1.5 million cartons. Required: Calculate the market-share and market-size variances for Emcee Inc. in 2017. (Calculate all variances in terms of contribution margin.) Comment on the results.

Question

Market-share and market-size variances (continuation of 14-27). Emcee Inc. prepared the budget for 2017 assuming a 20% market share based on total sales in the Midwest region of the United States. 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 western region was 1.5 million cartons.

Required:

Calculate the market-share and market-size variances for Emcee Inc. in 2017. (Calculate all variances in terms of contribution margin.) Comment on the results.

Expert Answer

Want to see the step-by-step answer?

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.
Tagged in
Business
Accounting

Related Accounting Q&A

Find answers to questions asked by students like you.

Q: Williams-Santana Inc. is a manufacturer of high-tech industrial parts that was started in 2002 by tw...

A: Accounting changes:Accounting changes are the alterations made to the accounting methods, accounting...

Q: Williams Industries has outstanding 30 million common shares, 20 million Class A shares, and 20 mill...

A: Redeemable shares: Shares with redemption privilege have to be returned back to the corporation, und...

Q: What are the accounting problems related to the presentation of interim data?

A: Interim data is the data which covers a period less than the fiscal year.  The data is issued during...

Q: If the stock is issued for assets other than cash, describe the recording of this transaction.

A: Stock: It refers to a security issued in a form of certificate. It implies the right of ownership of...

Q: Indicate how the following items are recorded in theaccounting records in the current year of Corone...

A: The adjustments to be made to the accounting records of Coronet CO for the current year would be bas...

Q: Identify and explain the major steps involved in preparing the statement of cash flows.

A: Click to see the answer

Q: Ray Solutions decided to make the following changes in its accounting policies on January 1, 2016: a...

A: The given situation is a change in the accounting principles from cash basis of accounting to accrua...

Q: Adams Moving and Storage, a family-owned corporation, declared a property dividend of 1,000 shares o...

A: Prepare journal entry to record the gain (loss) on investment at the date of declaration of property...

Q: Journalizing issuance of no-par stock Eates Corp. issued 8,000 shares of no-par common stock for $13...

A: No-par common stock: The common stock that is issued at its fair market value is known as no-par com...