Phicarler Company manufactures and sells one product. Its budget and actual operating results for 2020 as follows:

	BUDGETED	ACTUAL
Units sold	100,000	120,000
Unit contribution margin	$8.00	$10.00
Unit selling price	$21.00	$22.00

Industry volume was estimated to be 1,000,000 units when the budget was prepared. Actual industry volume for the period was 1,500,000 units.

Required:

1. Analyze respectively the effects of market size, market share and unit contribution margin on the variance of the total contribution margin. (7%)
2. Prepare a brief managerial feedback report including 4 points (8%):
   1. Variance of total contribution margin
   2. Reasons for the variance
   3. Responsibilities for these variances
   4. Initiatives for improving