The Parsons Company Has Budgeted to Capture 25% of the Market

Multiple Choice

The Parsons Company has budgeted to capture 25% of the market in which they operate which currently contains 1,000 stores.The budgeted contribution margin per unit sold is $4.50.If they were actually able to capture only 20% of the market, but their actual contribution margin was $5.00 per unit, their market share variance was:

A) $250 favorable
B) $225 unfavorable
C) $250 unfavorable
D) $225 favorable