Question

please see attaches dor question and multiple choice answers below:

Winston Co. had two products code named X and Y. The firm had the following budget for August Sales Variable Costs Contribution Margin Fixed costs Operating Income Selling Price per unit Product X $286,000 189,800 $ 96,200 50,000 $ 46,200 $ 110.00 Product Y $520,000 218,400 $301,600 108,000 $193,600 $ 50.00 Total $806,000 408,200 $397,800 158,000 $239,800 On September 1, the following actual operating results for August were reported: Sales Variable Costs Contribution Margin Fixed costs Operating Income Units Sold Product X $360,000 195,000 $165,000 50,000 $115,000 3,000 Product Y $540,000 216,000 $324,000 108,000 $216,000 9,000 Total $900,000 411,000 $489,000 158,000 $331,000 -

Answer 1

	Product X	Product Y	Total
Budget sales	286000	520000
(/) Selling price per unit	110.00	50.00
Budgeted unit sales	2600	10400	13000

Budgeted market share = Total budgeted unit sales / Total estimated industry volume = 13000 / 130000	10%
Budgeted contribution margin per composite unit for budgeted mix = Budgeted total contribution margin / Budgeted total unit sales = 397800 / 13000	30.6
Market size variance = ( Actual market size in units - Budgeted market size in units ) * Budgeted market share * Budgeted contribution margin per composite unit for budgeted mix = ( 100000 - 130000 ) * 10% * 30.6	91800	Unfavorable