Doug's Diner is planning to expand operations and is concerned that its reporting system might need improvement. The master budget income statement for the Downtown Doug's, which contains a delicatessen and restaurant operation, follows (in thousands): Delicatessen $600 Restaurant $ 2,000 Total $ 2,600 a There is no sales price variance. Variable costs, all other costs are fixed. Sales revenue Costs Purchases Hourly wages Franchise fee Advertising Utilities Depreciation Lease cost Salaries Total costs Operating profit 360 30 18 50 42 25 15 15 S555 $ 45 1,100 435 38 100 63 38 25 25 $ 1,824 $ 176 1,460 465 56 150 105 63 40 40 $ 2.379 $ 221 Required: Prepare a profit variance analysis for the delicatessen segment. (Hint: Use sales revenue as your measure of volume.) (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. Do not round your intermediate calculations. Enter your answers in thousands of dollars.) Actual Purchases Variances Marketing & Administrative Variances Flexible Budget Activity Variance Master Budget $ 700 $ 600 The company uses the following performance report for management evaluation: Sales revenue Variable costs: Purchases 450 35 21 360 30 DOWNTOWN DOUG'S Net Income for the Year ($000) Actual Results 18 45 42 Over-or (Under-) $ $ Delicatessen $700 Restaurant $1,000 Total $1,700 Budget $2,600 Budgeta 551 149 450 150 $ (900) $ $ $ (610) (80) (5) 50 Actual Results Sales revenue Costs Purchases Hourly wages Franchise feeb Advertising Utilities Depreciation Lease cost Salaries Total costs Operating profit 450 35 21 50 45 25 15 15 25 50 25 15 Hourly wages Franchise fee Utilities Total variable costs Contribution margin Fixed costs Advertising Depreciation Lease Salaries Total fixed costs Operating profit 400 350 30 100 50 38 25 25 $1,018 15 850 385 51 150 95 95 63 40 40 40 $1,674 $ 26 1,460 465 56 150 105 63 40 40 $2,379 $ 221 (10) 15 $ 15 105 44 $ $ 105 45 $656 $ $ (705) $ (195) $ 44 $ (18)