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Dillons Designs is a small business run out of its owners house. For the past 6 months, the company has been selling two products, a welcome sign and a birdhouse. The owner has been concerned about the companys marketing effectiveness. The master budget and actual results for March of this year follow:

	Master Budget
	Welcome Sign				Birdhouse				Total
Units		180				150				330
Sales	$	3,600			$	1,500			$	5,100
Variable costs		2,880				675				3,555
Contribution margin	$	720			$	825			$	1,545
Fixed costs		75				75				150
Operating income	$	645			$	750			$	1,395

	Actual Results
	Welcome Sign				Birdhouse				Total
Units		170				160				330
Sales	$	2,550			$	1,920			$	4,470
Variable costs		748				370				1,118
Contribution margin	$	1,802			$	1,550			$	3,352
Fixed costs		75				75				150
Operating income	$	1,727			$	1,475			$	3,202

The total market for welcome signs for each of the last 6 months was 500 budgeted and 500 actual. Dillon expected the total market for birdhouses to be 1,200 units per month; the actual volume for the entire market, however, turned out to be only 800 units per month.

Required:

Use MS Excel and/or Word, as appropriate, to provide any workings (optional). (12 points)

1. Compute Dillons actual market share for welcome signs and birdhouses.

2. What is the market share contribution margin variance? (Leave no cell blank; if there is no effect enter "0" and select "None" from dropdown. Do not round intermediate calculations. Round your answers to 2 decimal places.)

3. What is the market size contribution margin variance? (Leave no cell blank; if there is no effect enter "0" and select "None" from dropdown. Do not round intermediate calculations. Round your answers to 2 decimal places.)

4. What strategic implications can you draw from the variances?