The Payne Company manufactures two types of vinyl flooring. Budgeted and ac- tual operating data for 2000 are:

In late 1999, a marketing research firm estimated the industry volume for commercial and residential vinyl flooring in 2000 at 800,000 rolls. Actual indus- try volume for 2000 was 700,000 rolls. Required 1. Compute the sales-mix variance and sales-quantity variance by type of vinyl floor- ing and in total. 2. Compute the market-share variance and market-size variance. 3. What insights do the variances in requirements 1 and 2 provide about Payne Com- pany's performance in 2000?

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Commercial Static Budget Actual Results Residential Total Commercial Residential Total Units sales in rolls Contribution margin 20,000 $10,000,000 60,000 $24,000,000 80,000 $34,000,000 25,200 $11,970,000 58,800 $24,696,000 84,000 $36,666,000