The Parsons Company Has Budgeted to Capture 25% of the Market

question 16

Multiple Choice

The Parsons Company has budgeted to capture 25% of the market in which they operate which currently contains 1,000 stores.The budgeted contribution margin per unit sold is $4.50.If they were actually able to capture only 20% of the market, but their actual contribution margin was $5.00 per unit, their market share variance was:

• A)$250 favorable
• B)$225 unfavorable
• C)$250 unfavorable
• D)$225 favorable

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Definitions:

Opponent-process Theory

A psychological and neurological model that explains how the perception of one color can affect the perception of another, leading to contrasting aftereffects.

Trichromatic

A theory of color vision that proposes the eye detects colors through the response levels of three types of cones sensitive to different wavelengths.

Color Discrepancy

A difference in the perception or representation of colors between what is expected and what is perceived.

Trichromatic Theory

A theory explaining human color vision based on three types of cones sensitive to blue, green, and red wavelengths.