4. As the year 2016 commences, actual sales turn out to be strong at the set price of $33. Early in the year already there is a consensus among the leadership team that the market is best approximated by the "High\" demand scenario in Table 1. Effective April 1, 2016, Dummy has to lease an additional machine (at $20,000 per month} to accommodate the strong demand. In mid-May 2016, Gwen learns that SMARTY is indeed about to enter the market Dummy's aggressive pricing strategy was apparently not sufficient as a deterrent. Indeed, starting in July 2016, Dummy finds itself competing head-on with SMARTY. Table 2 summarizes the actual income statement for Dummy's South America division, splitting the year into the periods January-June (no competitor) and July-December (competing with SMARTY): Jan-June 2016 July-Dec 2015 Total Actual Revenues 4,653,000 3,432,000 8,085,000 Actual Var Cost 1,910,000 1,495,000 3,405,000 Actual CM 2,243,000 1,937,000 ' 4,680,000 Actual Fixed Cost 1,060,000 1,120,000 2,180,000 Actual Profit 2,500,000 Table 2 Conduct a variance analysis using the above information. (Hint: it makes sense to conduct the variance analvsis seoaratelv for Jan-June and Julv-Dec. 2016.}