Earle Soup Company makes three varieties of soups: Bean, Tomato, and Vegetable. Sales volume for the annual budget is determined by estimating the total market volume for soups and then applying the companys prior year market share, adjusted for planned changes due to company programs for the coming year. Volume is apportioned among the three varieties of soup based on the prior years product mix, again adjusted for planned changes for the coming year.

The following are the company budget and the results of operations for the most recent quarter.

Budget (all units and costs in thousands)
	Bean	Tomato	Vegetable	Total
Sales-units	30	cases	30	cases	60	cases	120	cases
Sales-dollars	$ 1,200		$ 2,400		$ 3,600		$ 7,200
Variable costs	840		1,920		2,760		5,520
Contribution margin	$ 360		$ 480		$ 840		$ 1,680
Manufacturing fixed cost	240		240		360		840
Product margin	$ 120		$ 240		$ 480		$ 840
Marketing and administrative costs (all fixed)							300
Operating profit							$ 540

Actual (all units and costs in thousands)
	Bean	Tomato	Vegetable	Total
Sales-units	24	cases	30	cases	63	cases	117	cases
Sales-dollars	$ 972		$ 2,400		$ 3,600		$ 6,972
Variable costs	672		1,932		2,784		5,388
Contribution margin	$ 300		$ 468		$ 816		$ 1,584
Manufacturing fixed cost	252		264		378		894
Product margin	$ 48		204		$ 438		$ 690
Marketing and administrative costs (all fixed)							330
Operating profit							$ 360

Industry volume for the quarter was estimated at 1.2 million cases for budgeting purposes. Actual industry volume for the quarter was 1,140,000 cases.

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.

\begin{tabular}{|l|ll|l|} \hline Sales price variance & $168 & U \\ \hline Sales activity variance & & & U \\ \hline \end{tabular} \begin{tabular}{|l|l|l|} \hline Market share variance & $42 or $54 & F \\ \hline Industry variance & & U \\ \hline \end{tabular}