Kyekyeku Company Retails Two Models of a Product: Model X

question 167

Multiple Choice

Kyekyeku Company retails two models of a product: Model X and Model Y. It considers both products to be close substitutes. The following data relate to the company's operations for last year: $\begin{array} { | l | r | r | r | } \hline & \text { Model X } & \text { Model Y } & \text { Total } \\\hline \text { Sales in Units: } & & & \\\hline \text { Budget } & 1,000 & 1,000 & 2,000 \\\hline \text { Actual } & 1,008 & 1,092 & 2,100 \\\hline \text { Contribution Margins per Unit: } & & & \\\hline \text { Budget } & \$ 30 & \$ 40 & \\\hline \text { Actual } & \$ 25 & \$ 38 & \\\hline \text { Market Volume in Units: } & & & \\\hline \text { Budget } & & & 40,000 \\\hline \text { Actual } & & & 52,500 \\\hline\end{array}$
- What was the market share variance for last year?

• A) $16,537.50 unfavourable.
• B) $18,375.00 favourable.
• C) $18,375.00 unfavourable.
• D) $21,875.00 favourable.

Evaluate available and unavailable choices within a given budget constraint.

Explain the opportunity cost concept in the context of budget constraints.

Assess how shifts in budget constraints reflect economic decisions.

Understand the difference between declarative and episodic memory.

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Definitions:

Political Power

The ability or capacity to influence or control the behavior of people or the course of events, often exercised by government officials or entities.

Pig Breeding

The practice of selectively mating pigs to improve desirable traits such as size, growth rate, and meat quality.

Infrastructure

In anthropological theory, the economic foundation of a society, including its subsistence practices and the tools and other material equipment used to make a living.

Superstructure

In Marxist theory, the social, political, and ideological systems and institutions that derive from and support the economic base of a society.