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) 76,800 136,000 Expected S Company sales (units) 7,680 34,000 Budgeted selling price per unit 160 200 Budgeted contribution margin per unit 90 125 Actual results for 20x2 included:

Product X Product Y Actual industry sales 100,000 145,000 Actual S Company sales 12,000 31,900 Actual selling price (unit) 150 175 Required: 1. Calculate the sales-volume, sales-mix and market-share variances in terms of contribution margins. 2. In your opinion, when a large sales-volume favourable variance could be an issue?