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 Chewy 2,000 bars $200 140 $ 60 36 $ 24 Chunky 2,000 bars $480 400 S 80 34 $ 46 Choco-Lite 4,000 bars $880 740 $140 56 $ 84 Total 8,000 bars Contribution margin Manufacturing fixed cost Product margin Marketing and administrative costs (all fixed) $1,560 1,280 $ 280 126 $ 154 57 $ 97 Operating profit Actual Sales-units (in thousands) Sales-dollars (in thousands) Variable costs 7,800 bars 1,600 bars $112 70 $ 42 40 2,000 bars $480 424 S 56 40 4,200 bars $880 716 $164 58 $106 $1,472 1.210 $ 262 138 $ 124 Contribution margin Manufacturing fixed cost Product margin Marketing and administrative costs (all fixed) Operating profit $111 Industry volume was estimated at 87.0 million bars for budgeting purposes. Actual industry volume for July was 79.2 million bars