Quill Pen Company manufactures two lines of pens: Super and Executive. Budgeted and actual contribution margin statements follow:

Required:
1. The budgeted total volume of 250 000 units was based on the company achieving a market share of 20 per cent. Actual industry volume reached 1290 000 units. Calculate the portion of Quill's increased volume resulting from improved market share.
2. Calculate the variance of actual contribution margin from budgeted contribution margin attributable to the sales price. Indicate whether the variance is favourable or unfavourable.
3. Calculate the variance of actual contribution margin from budgeted contribution margin attributable to unit variable cost changes. For each product. indicate whether the variance is favourable or unfavourable.
4. Provide a reconciliation that explains the source of differences between actual contribution margin and budgeted contribution margin?

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Quill Pen Company Budget and Actual Contribution Statements for the year ended 31 December (in 'ooos) Actual Budget Total Super Executive Super Executive Total 150 260 Unit sales 250 130 100 130 $2015 $900 $1235 $1000 $1900 $780 Sales revenue 975 1365 390 Variable expenses 750 1200 450 $ 260 $ 700 $ 650 $ 250 $450 $390 Contribution margin Fixed expenses: $190 $200 Manufacturing 140 153 Marketing 90 95 Administration $420 $448 Total fixed expenses $230 $252 Profit before taxes