14 6.66 Budget Sales-units (in thousands) Sales-dollars (in thousands) Variable costs Contribution margin Manufacturing fixed cost points Product margin Marketing and administrative costs (all fixed) Chewy 2,000 bars $160 Chunky 2,000 bars $320 Choco-Lite 110 250 4,000 bars $640 500 $ 50 44 $ 70 31 $140 55 $ 6 $ 39 $ 85 Total 8,000 bars $1,120 860 $ 260 130 $ 130 60 Operating profit $ 70 Actual Sales-units (in thousands) Sales-dollars (in thousands) Chewy 1,500 bars $ 90 Chunky 2,000 bars $320 Variable costs 46 270 Choco-Lite 4,100 bars $640 517 Total 7,600 bars $1,050 833 Contribution margin $ 44 Manufacturing fixed cost 36 $ 50 40 $123 $ 217 55 131 Product margin $ 8 $ 10 $ 68 $ 86 Marketing and administrative costs (all fixed) Operating profit 30 $ 56 Industry volume was estimated at 87.0 million bars for budgeting purposes. Actual Industry volume for July was 78.300 million bars. Required: a. Determine the sales price and sales activity variances. b. Break down the sales activity variance into the parts caused by Industry volume and market share. Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Determine the sales price and sales activity variances. (Do not round intermediate calculations. Enter your answers in thousands. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.) Sales price variance $ 46,000 U Sales activity variance $ 16,000 < Required A Required B >