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

question 17

Essay

The Buffett Company had the following expectations:
$$\begin{array} { l c } \text { Total market for the product } & 175,000 \text {units } \\\text { Buffett's budgeted sales } & 54,250 \\\text { Contribution margin per urit } & \$ 13.00 \\\text { Actual results for the year were: } & \\\text { Total market for the product } & 166,250 \text { units } \\\text { Buffett's actual sales } & 56,525\end{array}$$
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.

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Definitions:

American Entrepreneurs

Individuals in the United States who start, organize, manage, and assume the risks of a business or enterprise.

Philanthropists

Individuals who seek to promote the welfare of others, especially by the generous donation of money to good causes.

Private Equity Creation

The process of private investors injecting capital into companies that are not publicly traded on a stock exchange.

Linear Process

A sequential process that follows a straight line from initiation to completion without looping back or skipping steps.