U-Surf Sports manufactures two lines of surfboards. The Slab is a shortboard model making it easing to maneuver. The Rocket is a funboard model that lets the rider catch more waves. The following data are available for 2019:

	The Slab model	The Rocket model
Actual units sold	5,856	12,444
Budgeted sales	6,750	12,000
Actual selling price	$900	$1,200
Budgeted selling price	$860	$1,250
Budget cont. margin /unit	$375	$500
Actual cont. margin/unit	$360	$530

U-Surf subscribes to Market Data Forecast (MDF) which provides market forecasts for all surfboard sales within U-Surfs sales regions. At the beginning of 2019 MDF forecast sales of surfboards within U-Surfs sales area to be 156,250 boards. U-Surfs planned market share of this amount was 12%. At the end of 2019, MDF reported actual sales in this area was 146,400 boards.

Required:

1. Calculate the total sales-quantity variance for the contribution margin. (4 marks)
2. Calculate the market size and the market share variances. (4 marks) (continued on next page)

QUESTION 5 (continued)

3. Explain to the marketing manager, (using pertinent figures calculated in parts a and b) what the market size and market share variance results mean. Your explanation should include:
   • How these variances further explain the sales-quantity variance
   • Which variance is more easily controlled by U-Surf and why.

(3 marks)