Four analysts cover the stock of Fluorine Chemical

E8–2 Four analysts cover the stock of Fluorine Chemical. One forecasts a 5% return for the coming year. A second expects the return to be negative 5%. A third predicts a 10% return. A fourth expects a 3% return in the coming year. You are relatively confident that the return will be positive but not large, so you arbitrarily assign probabilities of being correct of 35%, 5%, 20%, and 40%, respectively, to the analysts’ forecasts. Given these probabilities, what is Fluorine Chemical’s expected return for the coming year?

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Speedy Printing manufactures soft cover books

Speedy Printing manufactures soft cover books. For January, the following information is available:

Budgeted market size (units) 125,000
Budgeted market share 18%
Budgeted average contribution margin per unit $1.20
Actual market size (units) 100,000
Actual market share 19%
Actual average contribution margin per unit $1.22

Required:
Compute the market-share variance, the market-size variance, and the sales-quantity variance in terms of the contribution margin.

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