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C . W . McCall sells a goldplated souvenir mug; McCall expects to sell 1 , 3 0 0 units for $ 5 5 each

C. W. McCall sells a goldplated souvenir mug; McCall expects to sell 1,300 units for $55 each to earn a $35 contribution margin per unit. Janice McCall, president, expects the years total market to be 26,000 units. For the year just completed, the local college won the national hockey championship, and as a result, the total actual market was 115,000 units. C. W. McCall sold 3,450 units and calculates sales variances using contribution margin. 1. What is the firms market size variance? 2. What is the firms sales volume variance?

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