Shari Kay owns and operates Perfect Petals, a successful florist shop in Bloomington, Indiana. Shari estimates that her variable costs amount to $0.25 per sales dollar (i.e., variable costs represent 25% of revenue) and that her fixed costs amount to $6,000 per month. Shari budgets for $16,000 in revenue per month. Shari's budget of $16,000 in monthly revenue is based on an estimated 2% market share. For July, Shari generated $18,500 in revenue and, based on industry data, assessed the actual market size at $740,000 in revenue. Shari's actual total costs for July were $11,680, which included $6,500 in fixed costs.
Required:
a. What is Shari's market size variance for July?
b. What is Shari's market share variance July?