3. The Omega Corporation manufactures two types of vacuum cleaners: the ZENITH for commercial building use and the House-Helper for residences. Budgeted and actual operating data for the year 2018 are as follows: Static Budget ZENITH House-Helper Total Number sold 15,000 60,000 75,000 Contribution margin $3,750,000 $12,000,000 $15,750,000 Actual Results ZENITH House-Helper Total Number sold 16,500 38,500 55,000 Contribution margin $6,200,000 $10,200,000 $16,400,000

Assume that Omega Corporation operates in Midwest market. The total Midwest market is expected to be 500,000 units in sales volume for 2018. The actual total Midwest market for 2018 was 440,000 units in sales volume. Required: Label all variances as either favorable (F) or unfavorable (UF)

a. Calculate the total contribution margin for the flexible budget.

b. Determine the total static-budget variance, the total flexible-budget variance, and the total sales-volume variance in terms of the contribution margin.

c. Calculate the market-share and market size variances in contribution margin terms for the Omega Corporation for 2018