Riverbed, Inc. produces three different grades of shovels. The differences among the shovels are due to the materials and construction of the handles. These differences result in cost and selling price differences. Riverbed's product strategy is to provide high quality, long-lasting tools. Originally, the target market was construction and landscape design companies. They introduced the low-price model when home renovation enthusiasts started asking for Riverbed products but seemed reluctant to pay the price for professional-grade tools. Estimated sales information for the upcoming 6 months is as follows (assume an even distribution over the 6 months).

Question 5 Riverbed, Inc. produces three different grades of shovels. The differences among the shovels are due to the materials and construction of the handles. These differences result in cost and selling price differences. Riverbed's product strategy is to provide high quality, long-lasting tools. Originally, the target market was construction and landscape design companies. They introduced the low-price model when home renovation enthusiasts started asking for Riverbed products but seemed reluctant to pay the price for professional-grade tools. Estimated sales information for the upcoming 6 months is as follows (assume an even distribution over the 6 months). Market Size (shovels) Riverbed Sales (shovels) Selling Price Variable Costs Professional Grade 30,300 25,300 $136 $55 Performance Grade 20,40 4,900 $ 87 $39 Home Repairs 49,800 9,800 $ 31 $14 Due to an upturn in the housing market and a stronger economy, 3 months into this 6-month planning period, actual sales information indicated the following. Market Size Riverbed Sales (shovels) (shovels) Selling Price Variable Costs Professional Grade 20,050 18,050 $136 $55 Performance Grade 8,100 1,850 $ 87 $39 Home Repairs 35,000 9,800 $ 3 $14 Analyze the market share and market size variances. (Enter all amounts as positive. Round intermediate calculations to 6 decimal places, e.g. 1.546572 and final answers to 0 decimal places, e.g. 5,125.) Market Share Variance Market Size Variance Professional Grade Performance Grade Home Repair Total As a result of the results for the first 3 months, Riverbed increased the selling price of the professional-grade shovel to $146 and the home repairs shovel to $36. Further, the selling price of the performance grade shovel was reduced to $82. The sales results for the second 3 months are as follows Market Size Riverbed Sales (shovels) (shovels) Selling Price Variable Costs Professional Grade 20,050 $55 Performance Grade 10,200 18,050 $146 2,060 $ 82 $39 Home Repairs 39,900 14,700 $ 36 $14 Analyze the market changes and the effect of the sales price change. (Enter all amounts as positive. Round intermediate calculations to 6 decimal places, e.g. 1.546572 and final answers to 0 decimal places, e.g. 5,125.) Market Share Variance Market Size Variance Professional Grade Performance Grade