Wheat Inc Has an Exclusive Contract with an Exporter

question 32

Multiple Choice

Wheat Inc. has an exclusive contract with an exporter. Two brands of wheat are imported, labeled AB and CD. The following data are provided for the current fiscal year:

The total market was estimated to 40,000 bushels at the time of budget. The actual total market for the year is 32,000 bushels.
What is the firm's market share variance?

• A) $0.
• B) $560 favorable.
• C) $8,000 favorable.
• D) $1,225 favorable.
• E) $10,500 favorable.

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Definitions:

Batting Cages

Enclosed areas for baseball or softball players to practice batting.

Gain Or Loss

Gain or loss refers to the financial outcome resulting from the sale of an asset or investment, calculated as the difference between the sale price and the original purchase price.

Accumulated Depletion

The total reduction in value of a natural resource as it is extracted or used over time.

Mineral Deposit

A concentration of naturally occurring material from the earth's crust that can be extracted and processed profitably.