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Peninsula Candy Company makes three types of candy bars. Chewy, Chunky, and Choco-ute (te) Sales volume for the annual budget is determined by estimating the

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Peninsula Candy Company makes three types of candy bars. Chewy, Chunky, and Choco-ute (te) Sales volume for the annual budget is determined by estimating the local market volume for candy bars 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 bars based on the prior year's product mor, again adjusted for planned changes for the coming year The following are the company budget and the results of operations for July 2.000 bars2 ,000 bars 8000 bars $1.200 $ 280 $ 140 Sales units in thousands) Sales dollars in thousands) Variable costs Contribution margin Manufacturing fixed cost Product margin Marketing and administrative costs (all fixed) Operating profit Actual Sales-units in thousands) Sales dollars in thousands) Variable costs Contribution margin Manolacturing fixed cost Product margin Marketing and admi tive cost (alle Operating po Industry volume was estimated at 80 million bars for budgeting purposes. Actual industry volume for July was 76 ton bars Required: Break down the total activity variance into sales mix and quantity parts. Do not round intermediate calculations. Enter your answers in thousands. Indicate the effect of each variance by selecting F or favorable, or "U for unfavorable. If there is no effect, do not select either option) Quantity variance Chewy 2,000 bars2 $200 Chunky ,000 bars $400 320 $ 80 40 Choco-Lite 4,000 bars $600 460 $140 Total 8,000 bars $1,200 920 $ 280 140 $ 60 60 140 $ 20 $ 80 $ 140 50 Budget us Sales-units in thousands) Sales-dollars (in thousands) Variable costs Contribution margin Manufacturing fixed cost Product margin Marketing and administrative costs (all fixed) Operating profit Actual Sales-units (in thousands) Sales-dollars (in thousands) Variable costs Contribution margin Manufacturing fixed cost Product margin Marketing and administrative costs (all fixed) Operating profit $ 90 1,600 bars $162 112 5 50 2,000 bars $400 322 $ 78 4,200 bars $600 464 $136 7,800 bars $1,162 898 $ 264 42 63 149 $ 8 $ 34 $ 73 $ 115 55 $ 60

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