Kyekyeku Company Retails Two Models of a Product: Model X

question 173

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 volume variance for last year?

• A) $18,375.00 favourable.
• B) $19,687.50 favourable.
• C) $21,875.00 favourable.
• D) $21,875.00 unfavourable.

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Definitions:

Product Benefit

The positive outcomes or advantages that a consumer can expect to gain from using a product.

Conventional Marketing

Traditional marketing methods such as print ads, billboards, and broadcasting that do not involve digital channels.

Promotional Messages

Communications designed to inform, persuade, or remind potential customers about a product, service, or brand.

"You" Attitude

A communication approach focusing on and prioritizing the reader's or listener's perspective and interests.