The director of a large regional reference laboratory was reviewing the service's per- formance over the past year. The labora- tory had gross revenues of $3,500,000. Some of the business was to managed care plans and to large-volume users that resulted in a discount of $350,000, which was $25,000 more than anticipated due to intense competition. The cost of providing lab testing was $1,400,500, which was $250,000 higher than expected. Direct costs for salaries were $870,000. What was the product mix variance experienced by the laboratory service? What was the price variance?