For the sales cycle (till the next product launch) of its latest phone model and considering the US market alone for the latest model phones, Apple Inc. projected to obtain a 40% share of the market that it estimated at 23 million units. It planned to sell 5 units of the base model for every 3 units of the pro model.

At the end of the cycle, market share of Apple turned out to be 39% while the market-wide sales came in at 24 million units. Actual sales for Apple were equally split between the base model and the pro model.

Requirement: Expressing your answer in millions of dollars (i.e., $2,250,000 would be entered as 2.25) Calculate the market size variance given the following information re prices and costs.

Budgeted Budgeted Actual Actual

Base model Pro Model Base Model Po Model

Price per unit $400 $700 $450 $725

Variable cost per unit 200 300 210 310

Contribution margin per unit 200 400 240 415

Denote a favorable variance with a positive number and unfavorable variance with a negative number. Remember to adjust for the mix of the product before decomposing the quantity variance into portions relating to market size and market share.