Danner Fashions Sells a Line of Women's Dresses What Additional Information Is Needed for Danner to Calculate the for November

question 77

Multiple Choice

Danner Fashions sells a line of women's dresses.Danner's performance report for November is shown below: (CMA adapted) The company uses a flexible budget to analyze its performance and to measure the effect on operating income of the various factors affecting the difference between budgeted and actual operating income.
$$\begin{array} { | l | r | r | } \hline & \text { Actual } & \text { Budget } \\\hline \text { Dresses sold } & 5,000 & 6,000 \\\hline \text { Sales } & \$ 235,000 & \$ 300,000 \\\hline \text { Variable costs } & ( 145,000 ) & \underline { ( 180,000 ) } \\\hline \text { Contribution margin } & \$ 90,000 & 120,000 \\\hline \text { Fixed Costs } & \underline { ( 84,000 ) } & \underline { ( 80,000 ) } \\\hline \text { Operating inc ome } &\underline {\$6 , 000} &\underline { \$ 40,000 }\\\hline\end{array}$$ What additional information is needed for Danner to calculate the dollar impact of a change in market share on operating income for November? (CMA adapted)

• A) Danner's budgeted market share and the budgeted total market size.
• B) Danner's budgeted market share,the budgeted total market size,and average market selling price.
• C) Danner's budgeted market share and the actual total market size.
• D) Danner's actual market share and the actual total market size.

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