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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
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 company's 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 year's 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 operating profit Actual (all units and costs in thousands) Sales-units Sales-idollars Var lable cost: Contribution margin Manufacturing flxed cost Product margin Harketing and adninfstrative costs (al2 fixed) opecating profit Industry volume for the quarter was estimated at 12 milion coses for budgeting purposes Actual industry volume for the quarter was 1,140,000 cases. Required: Break down the total activity vanance into sales mix and quanty parts Note: Do not round intermediote colculotions. Enter your onswers in thousands. Indicote the effect of esch variance by selecting "F" for fovoroble, or " U" for unfevoroble. If there is no effect, do not select elther option
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