Market Size and Market Share Variances for Small Business Diane’s Designs is a small business run out of its owner’s house. For the past 6 months, the company has been selling two products, a welcome...

Market Size and Market Share Variances for Small Business Diane’s Designs is a small business run out of its owner’s 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 company’s marketing effectiveness. The master budget and actual results for March of this year follow:

The total market for welcome signs for each of the last 6 months was 500 budgeted and 500 actual. Diane expected the total market for birdhouses to be 200 units per month; the actual volume for the entire market, however, turned out to be only 175 units per month. Required Round all calculations to 4 decimal places after the decimal point. 1. Compute Diane’s actual market share for welcome signs and birdhouses. 2. What is the market share contribution margin variance? 3. What is the market size contribution margin variance? 4. Explain possible reasons for these variances.