The S Company produces and sells two product lines with the following budgeted revenues and expenses:

	Product X	Product Y
Expected total industry sales (units)	82,100	142,000
Expected S Company sales (units)	8,810	38,000
Budgeted selling price per unit	140	220
Variable costs per unit	65	110

Actual results for 20x2 included:

	Product X	Product Y
Actual industry sales	96,000	162,000
Actual S Company sales	16,000	32,600
Actual selling price (unit)	155	198

Required:

1. Calculate the sales volume, sales-quantity and market-size variances in terms of contribution margins.

2. In your opinion, when a large market-size favourable variance could be an issue?