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In: Accounting

J&J, Inc., manufactures two products that it sells to the same market. Excerpted below are its...

J&J, Inc., manufactures two products that it sells to the same market. Excerpted below are its budgeted and actual operating results for the year just completed:

Budget Actual
Unit sales
Product X 31,500 78,000
Product Y 81,000 44,000
Unit contribution margin
Product X $ 4.8 3.9
Product Y $ 13 14
Unit selling price
Product X $ 13 14
Product Y $ 30 29

Industry volume was estimated to be 1,425,000 units at the time the budget was prepared. Actual industry volume for the period was 1,720,000 units. J&J measures variances using contribution margin. The market share variance is: (Round percentage answers to nearest whole percent and other values to 2 decimal places.)

$75,400 unfavorable.

$91,990 unfavorable.

$171,900 unfavorable.

$184,040 unfavorable.

$224,700 unfavorable.

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ekkarill92 answered 1 year ago
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