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The budgeted market share and actual total market size in units have to be known in order to calculate the impact of a change in market share. See the correct answer for a complete explanation.
The budgeted market share and actual total market size in units have to be known. See the correct answer for a complete explanation.
The budgeted market share and actual total market size in units have to be known. See the correct answer for a complete explanation.
The market share variance is calculated as follows: [(Actual Market Share ? Expected Market Share) × Actual Market Size in Units] × Standard Weighted Average Contribution Margin per Unit. To determine the dollar impact of a change in market share on operating income, we need to know the actual market size in units, actual market share, budgeted market shares and standard weighted average contribution margin per unit. In the question, we are given the actual units sold, thus, we can calculate the actual market share if we obtain the additional information of actual market size in units. We also can calculate the standard weighted average contribution margin per unit from the given data. To complete the formula we also need to obtain information of budgeted (expected) market share.