Market Size, Market Share, Price, Mix, and Volume Variances; Foreign Currency Fluctuations

Tall Pines Brewery (TPB) makes two specialty beers in its microbrewery: Golden Ale and Dark Ale.
Both beers sell for the same price per case in the U.S. market and in the export market. The latter market
is primarily European countries. Both beers also have the same variable production costs, though
the export product has slightly higher variable costs due to shipping and other distribution costs associated
with the export beers. The price, cost, and market information for the two beers are shown below:
Budgeted Actual
Budgeted
Wt Avg
CM
Sales units (cases)
Domestic 22,000 22,350
Export 12,000 14,500
Total 34,000 36,850
Price per case
Domestic $88 $87
Export 90 92
Variable cost per case
Domestic $62 $62
Export 68 68
Contribution margin per case
Domestic $26 $25
Export 22 24
Total contribution margin
Domestic $572,000 $558,750
Export 264,000 348,000 $24.5882
Industry Budget Industry Actual
Sales units (cases)
Domestic 901,500 924,550
Export 635,400 645,750
The budget was prepared with the expectation that the currency exchange rate would be $1.29 per euro.
The actual average exchange rate for the period reflected the falling dollar, at $1.42 per euro.
Required Round all calculations to 4 decimal places after the decimal point.
1. What is the market share variance?
2. What is the market size variance?
3. What is the selling price variance and sales volume variance?
[LO 16-3], [LO 16-4]