Debbies Delight, Inc., operates a chain of cookie stores. Budgeted and actual operating data of its three Chicago stores for February 2011 are as follows:

Budget for February

	Selling Price Per Pound	Variable Costs Per Pound	Contribution Margin Per Pound	Sales Volume in Pounds
Chocolate chip	$4.50	$2.50	$2.00	45,000
Oatmeal raisin	5.00	2.70	2.30	25,000
Coconut	5.50	2.90	2.60	10,000
White chocolate	6.00	3.00	3.00	5,000
Macadamia	6.50	3.40	3.10	15,000
				100,000

Actual for February

	Selling Price Per Pound	Variable Costs Per Pound	Contribution Margin Per Pound	Sales Volume in Pounds
Chocolate chip	$4.50	$2.60	$1.90	57,000
Oatmeal raisin	5.20	2.90	2.30	18,000
Coconut	5.50	2.80	2.70	9,600
White chocolate	6.00	3.40	2.60	13,800
Macadamia	7.00	4.00	3.00	21,600
				120,000

Debbies Delight attains a 10% market share of the Chicago market. The total Chicago market is expected to be 1,000,000 pounds in sales volume for February 2011. The actual total Chicago market for February 2011 was 960,000 pounds in sales volume.

Debbies Delight focuses on contribution margin in its variance analysis.

Required

Compute flexible budget variance, sales mix variance, market share variance, and market size variance.Note: You would have an option to try to analyze flexible budget variance into price variance and unit variable cost variance if you prefer

Try your best to infer who or which department, sales or production, would be responsible for each of those variances above.

Try your best to imagine how to correct unfavorable ones of those variances above.

Prepare a feedback reporting for February 2011 to CEO of Debbies Delight based on your own understandings. The reporting would be organized into 4 parts: variances, reasons, responsibility, and initiatives.