Peninsula Candy Company makes three types of candy bars: Chewy, Chunky, and Choco-Lite (Lite). Sales volume for the annual budget is determined by estimating the total 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 mix, again adjusted for planned changes for the coming year The following are the company budget and the results of operations for July Budget Sales-units (in thousands) Sales-dollars (in thousands) Variable costs Chunky 4,000 bars $640 480 $160 34 $126 Total Chewy 4,000 bars $400 280 $120 Choco-Lite 8,000 bars $1,440 1,160 S 280 16,000 bars $2,480 1,920 $ 560 138 $ 422 56 $ 366 Contribution margin 59 Manufacturing fixed cost Product margin Marketing and administrative costs (all fixed) S 75 $ 221 Operating profit Actual Sales-units (in thousands) Sales-dollars (in thousands) Variable costs 3,000 bars $210 135 S 75 38 S 37 4,000 bars $640 540 $100 36 64 15,200 bars 8,200 bars $1,440 1,120 $ 320 $2,290 1,795 $ 495 134 $ 361 Contribution margin Manufacturing fixed cost Product margin Marketing and administrative costs (all fixed) 60 $ 260 Operating profit $ 340 Industry volume was estimated at 86.4 million bars for budgeting purposes. Actual industry volume for July was 80.0 million bars