Arrow Manufacturing Inc. {Alv'll] manufacbires gadgets. tt makes two types, the A100 and the 0-200. The marketing group has reviewed the yearend protability reports but are unsure as to how well the company fared compared to the original budget. AMI anticipated combined SEIE volume of 144,000 units, for the A10[) and the 0-200, when it developed the current year budget. The A100 had typically accounted for 2596 of the company's sales in the past and senior management had used that percentage in calculating the current year's budget, although he was hopeful that the B-2DUs proportion would grow. In the budget, the tit100 had a unit selling price of $525.00. Variable manufacturing costs were budgeted at $300.00 per unit. The only variable operating cost was a commission of 8% ofthe unit selling price that was paid to the sales representatives. The 0200 is a higher quality gadget that uses better materials and is more labour intensive to manufacture than the A100. The B~200 was budgeted to sell at $900.00. The variable manufacturing costs were budgeted at 45% of the budgeted selling price. The commission paid on the 0200 was 1096 in order to encourage salE. 2020 was a difcult year and sales were lower than anticipated. In an attempt to retain market share, the selling price ofthe A100 was reduced by 10% and by 8% on the 0200. Sales commissions, based on the unit selling price, remained at 896 for the A100 and 10% on the 0200. Following is a summary of other relevant product information forthe year: All] BZ] Budgeted sales volume 108,000 36,000 Actual sales volume 9?,200 43,200 Actual variable manufacturing costs per unit $290.00 $450.00 Fixed manufacturing and xed marketing costs were very close to budget Anticipated industry volume was 1,440,000 units per year. Actual indusb'yr volume was 6% higher than anticipated. 1. What was the budgeted contribution {in total and for each product} forthe current year? [4 marks] 2. What was the actual contribution [in total and for each product] for the current year? [3 marks] 3. Prepare a variance analysis from the information provide by calculating the following variances: 1. Flexible budget variance for both products. [2 marks] 2. Sales volume variance for both products. [2 modulo} 3. Sales quantity variance for both products. [2 marks] 4-. Mix variance for both products. [2 marks] Calculate the market size and market share variance for the gadgets. [4 marks] Assess the company's performance forthe year. [2 rnarlcs] rar