Acme Manufacturing, manufactures two types of toys Product A and Product B. The actual operating income for the year was $4,600 below the budgeted operating income. You have been asked to analyze the sales volume variances based on the following information:

	Budget	Budget	Budget		Actual	Actual	Actual
	Product A	Product B	Total		Product A	Product B	Total
Unit selling price	$20.00	$30.00			$21.00	$32.00
Variable costs:
Manufacturing	$11.00	$17.00			$12.00	$20.00
Marketing	$1.00	$1.00			$1.10	$1.10
Fixed costs:
Manufacturing			$34,500				$36,000
Marketing			$40,000				$44,000
Sales volume (units)	9,000	6,500			10,000	7,000
Industry sales volume (units)			72,500				64,000

Required:

1. Calculate the following variances for each product (16 marks):
   1. Sales-volume variance
   2. Flexible-budget variance
   3. Sales-quantity variance
   4. Sales-mix variance
2. Calculate market-size and market-share variances. (4 marks)
3. Based upon your results in parts 1 and 2, provide two observations about the companys actual performance compared to the budgeted expectations. (5 marks)