Twitter Company Manufactures a Remote Control Device for Home Theaters

question 11

Multiple Choice

Twitter Company manufactures a remote control device for home theaters. The following data were from the operating period just completed: $\begin{array}{lll}\text { Actual market size (units) } & 12,000 \\\text { Budgeted market size (units) } & 11,000 \\\text { Actual market share } & 15 \% \\\text { Budgeted market share } & 12 \%\\\text { Budgeted selling price per unit } & \$ 60 \\\text { Actual selling price per unit } & \$ 55 \\\text { Budgeted variable cost per unit } & \$ 30 \\\text { Actual variable cost per unit } & \$ 18\end{array}$ What is the firm's market size variance?

• A) $2,440 favorable.
• B) $3,600 favorable.
• C) $5,550 favorable.
• D) $6,000 favorable.
• E) $6,300 favorable.

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Definitions:

Net Income

The profit of a company after all expenses and taxes have been deducted from revenue.

Management

The process of directing, controlling, and organizing the work of a company or organization and its employees.

Price Changes

Refers to variations in the cost of goods or services over a period of time, often impacting consumer purchasing power and business profit margins.