The impact of changing market size on Birdwell’s profits can be assessed through the market size variance. It is $2,025 favorable. This means that the company’s contribution margin would have increased by this amount had the actual market share percentage equaled the budgeted market share percentage. Unfortunately for Birdwell, the market share percentage slipped. Still, Birdwell is better off due to increasing market size, since a market share of 8.2 percent would yield even smaller profits from a smaller market.