Question

Rhaden Company produces sweat-resistant headbands for joggers. Information pertaining
to Rhaden's operations for May 2011 follo
Actual Budget
Units sold 230,550 220,000
Sales revenue $3,412,140 $3,300,000
Variable cost ratio 68% 64%
Market size in units 4,350,000 4,400,000
Required:
1. Compute the sales volume variance for May 2011.
2. Compute the market share and market-size variances for May 2011.
3.Comment on possible reasons for the variances you computed in requirement 2.

Answer 1

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