The Robin’s Basket’s senior vice president of marketing prepared her budget at the beginning of the third quarter assuming a 10% market share based on a budgeted market size of 1,000,000 pints in August. However, actual market size in August was 1,250,000 pints.

Required

1. Calculate the market-share and market-size variances for the Robin’s Basket in August 2020 (calculate all variances in terms of contribution margins).
2. Explain what happened based on the market-share and market-size variances.
3. How many pints would the Robin’s Basket have to sell in August 2020 for the market share variance to be zero? Calculate the actual market size, in units, that would have led to no market-size variance.