(Appendices 11A and 11B)The following is a summarized master budget that Moose Jaw Company prepared for February:

\begin{array}{l}\begin{array}{lll}\text {Sales}\\\\\text {Sales revenue}\\\text {Less variable costs:}\\\text {Manufacturing}\\\text {Marketing}\\\text {Contribution margin}\\\text {Less fixed costs:}\\\text {Manufacturing}\\\text {Marketing}\\\text {Operating income}\\\end{array}\begin{array}{ccc}& 9.000 \text { units* } \\\\& \$ 450,000 \\\\\$ 270,000 & \\18,000 & 288,000\\&\$ 162,000\\\\\$ 72.000 & \\27.000 & 99.000\\&\$ 63.000\end{array}\end{array}

*Based on estimated industry volume (market-size) of 180,000 units

Actual results for January were as follows:

\begin{array}{l}\begin{array}{lll}\text {Industry volume } \\\text {Units produced and sold } \\\text {Selling price per unit } \\\text {Variable costs per unit: } \\\text {Manufacturing } \\\text {Marketing } \\\text {Fixed costs: } \\\text {Manufacturing } \\\text {Marketing } \\\end{array}\begin{array}{lll}140,000 \text { units } \\8,400 \text { units } \\\$ 55.00 \\\\\$ 32.00 \\\$ 1.50 \\\\\$ 72.000 \\\$ 27,000\end{array}\end{array}

Required:

a) (Appendix 11A) Calculate the flexible budget variance and analyze it into sales price variance and cost/expense variance(s).
b) (Appendix 11A) Calculate the sales volume variance and analyze it into market-size (industry volume) variance and market-share variance.
c) (Appendix 11A) Assume that the marketing manager has direct influence in setting selling prices. On the basis of your analysis in part (b), would you conclude recommend a bonus be paid to the sales manager? Why or why not?
d) How successful was the marketing manager in controlling the cost of the marketing activity? Explain.

All Other Things Equal,a Company's Return on Investment Is Affected

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