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	Chewy						Chunky						Choco-Lite						Total
Sales-units (in thousands)	4,000 bars						4,000 bars						8,000 bars						16,000 bars
Sales-dollars (in thousands)		$	440					$	880					$	1,920					$	3,240
Variable costs			320						720						1,640						2,680
Contribution margin		$	120					$	160					$	280					$	560
Manufacturing fixed cost			39						40						60						139
Product margin		$	81					$	120					$	220					$	421
Marketing and administrative costs (all fixed)																					57
Operating profit																				$	364
Actual	Chewy					Chunky							Choco-Lite						Total
Sales-units (in thousands)	3,000 bars						4,000 bars						8,200 bars						15,200 bars
Sales-dollars (in thousands)		$	180					$	880					$	1,920					$	2,980
Variable costs			102						764						1,658						2,524
Contribution margin		$	78					$	116					$	262					$	456
Manufacturing fixed cost			39						40						55						134
Product margin		$	39					$	76					$	207					$	322
Marketing and administrative costs (all fixed)																					34
Operating profit																				$	288

Industry volume was estimated at 96.4 million bars for budgeting purposes. Actual industry volume for July was 87.724 million bars.

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.