The Buffett Company Had the Following Expectations Required:
(Be Sure to Indicate Whether the Variance Is Favorable

Essay

The Buffett Company had the following expectations:
$$\begin{array} { l c } \text { Total market for the product } & 175,000 \text {units } \\\text { Buffett's budgeted sales } & 54,250 \\\text { Contribution margin per urit } & \$ 13.00 \\\text { Actual results for the year were: } & \\\text { Total market for the product } & 166,250 \text { units } \\\text { Buffett's actual sales } & 56,525\end{array}$$
Required:
(Be sure to indicate whether the variance is favorable or unfavorable.)
a. Compute Buffett's sales activity variance.
b. Compute Buffett's market share variance.
c. Computer Buffett's industry volume variance.