(a) Calculate the following Sales Variancesi. Total Sales Margin Variance ii. Price Variance iii. Volume Variance iv. Mix Variance v. Quantity Variance vi. Market Share Variance vii. Market Size Variance (b) Critically evaluate the implications of each of the variances you have calculated in (a) above. You should identify the linkages between the variances calculated.

Cootehill Ltd makes and sells fleece gloves in the Irish 8: UK markets. It currently has a market share of 20%. Analysis shows that the total market size is 500,000 pairs Budgeted activity for the period Sales Pairs of Gloves Selling Price {2 Std Cost #2 Ladies 40,000 12 To\" Gents 30,000 10 6 Boys 15,000 E 3 Girls 15,000 4 2 Total 100,000 Actual results for the period were as follows Total Market Size 450,000 pairs Market Share 21% Sales Pairs of Gloves sold Selling Price Ladies 42,000 11 Gents 28,000 11 Boys 12,000 7 Girls 12,500 4