Paquindo Co

question 104

Essay

Paquindo Co. has two products: X and Y. The firm had the following budget and operating results for the period just ended. The budgeted total industry sales for both products was 324,800 units and the actual industry sales was 350,000.
Required:
(A) Calculate the contribution margin sales volume variance for Product X.
(B) Calculate the contribution margin sales volume variance for Product Y.
(C) Calculate the sales mix variance for Product X.
(D) Calculate the sales quantity variance for Product X.
(E) Calculate the sales mix variance for Product Y.
(F) Calculate the sales quantity variance for Product Y.
(G) Calculate the market share variance for both products.
(H) Calculate the market size variance for both products.

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Definitions:

Good

A material item or service that can be bought, sold, or traded, providing utility or satisfaction to the buyer.

Circumstances

A fact or condition connected with or relevant to an event or action, often influencing it or determining the outcomes.

Economic Theory

A set of principles and models that attempts to explain how economies operate and how economic agents interact.

Real-world Events

Occurrences or incidents that take place in the actual world as opposed to theoretical or artificial environments.