The Buffett Company had the following expectations:$$\begin{array} { | c | r | l | }
\hline \text { Total market for the product } & 175,000 & \text { units } \
\hline \text { Buffett's budgeted sales } & 54,250 & \
\hline \text { Contribution margin per unit } & \$ 13.00 & \
\hline \text { Actual results for the year were: } & & \
\hline \text { Total market for the product } & 166,250 & \text { units } \
\hline \text { Buffett's actual sales } & 56,526 & \
\hline
\end{array}$$
Required:
(Be sure to indicate whether the variance is favorable or unfavorable. )
a.Compute Buffett's sales activity variance.b.Compute Buffett's market share variance.c.Computer Buffett's industry volume variance.

Question

The Buffett Company had the following expectations:$$\begin{array} { | c | r | l | } 
\hline \text { Total market for the product } & 175,000 & \text { units } \
\hline \text { Buffett's budgeted sales } & 54,250 & \
\hline \text { Contribution margin per unit } & \$ 13.00 & \
\hline \text { Actual results for the year were: } & & \
\hline \text { Total market for the product } & 166,250 & \text { units } \
\hline \text { Buffett's actual sales } & 56,526 & \
\hline
\end{array}$$ 
Required:
(Be sure to indicate whether the variance is favorable or unfavorable. )
a.Compute Buffett's sales activity variance.b.Compute Buffett's market share variance.c.Computer Buffett's industry volume variance.

Quizplus · Accepted Answer

The Answer of The Buffett Company had the following expectations:$$\begin{array} { | c | r | l | } 
\hline \text { Total market for the product } & 175,000 & \text { units } \
\hline \text { Buffett's budgeted sales } & 54,250 & \
\hline \text { Contribution margin per unit } & \$ 13.00 & \
\hline \text { Actual results for the year were: } & & \
\hline \text { Total market for the product } & 166,250 & \text { units } \
\hline \text { Buffett's actual sales } & 56,526 & \
\hline
\end{array}$$ 
Required:
(Be sure to indicate whether the variance is favorable or unfavorable. )
a.Compute Buffett's sales activity variance.b.Compute Buffett's market share variance.c.Computer Buffett's industry volume variance.

The Buffett Company Had the Following Expectations Required: (Be Sure to Indicate Whether the Variance Is Favorable

The Buffett Company Had the Following Expectations Required:
(Be Sure to Indicate Whether the Variance Is Favorable