Dougs Diner is planning to expand operations and is concerned that its reporting system might need improvement. The master budget income statement for the Downtown Dougs, which contains a delicatessen and restaurant operation, follows (in thousands): Delicatessen Restaurant Total Sales revenue $ 1,000 $ 2,500 $ 3,500 Costs Purchases 600 1,000 1,600 Hourly wages 50 876 926 Franchise fee 30 76 106 Advertising 100 200 300 Utilities 70 126 196 Depreciation 50 76 126 Lease cost 30 50 80 Salaries 30 50 80 Total costs $ 960 $ 2,454 $ 3,414 Operating profit $ 40 $ 46 $ 86 The company uses the following performance report for management evaluation: DOWNTOWN DOUGS Net Income for the Year ($000) Actual Results Actual Results Delicatessen Restaurant Total Budget Over- or (Under-) Budgeta Sales revenue $ 1,200 $ 2,000 $ 3,200 $ 3,500 $ (300 ) Costs Purchasesb 780 800 1,580 1,600 $ (20 ) Hourly wagesb 60 700 760 926 (166 ) Franchise feeb 36 60 96 106 (10 ) Advertising 100 200 300 300 Utilitiesb 76 100 176 196 (20 ) Depreciation 50 76 126 126 Lease cost 30 50 80 80 Salaries 30 50 80 80 Total costs $ 1,162 $ 2,036 $ 3,198 $ 3,414 $ (216 ) Operating profit $ 38 $ (36 ) $ 2 $ 86 $ (84 ) Prepare a profit variance analysis for the delicatessen segment. (Hint: Use sales revenue as your measure of volume.)