Tall Pines Brewery (TPB) makes two specialty beers in its micro-brewery: Golden Ale and Dark Ale. Both beers sell for the same price per case in the U.S. market and in the export market, which is primarily to 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 is shown below.

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
1. What is the market share variance?
2. What is the market size variance?
3. Explain possible reasons for these variances, including a consideration of the effect of the change in the currency exchange rate for the dollar and the Euro.

Budgeted Budget Sales units (cases) 22,350 36,850 Variable cost per case 5 2 2 5 2 Contribution margin per case Total contribution margin $572,000 $558,750 S348,000 24.5882 Industry Budget 901,500 635,400 Industry Actual 924,550 645,750 3