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)	2,500 bars						2,500 bars						5,000 bars						10,000 bars
Sales-dollars (in thousands)		$	250					$	500					$	1,000					$	1,750
Variable costs			175						400						850						1,425
Contribution margin		$	75					$	100					$	150					$	325
Manufacturing fixed cost			42						39						59						140
Product margin		$	33					$	61					$	91					$	185
Marketing and administrative costs (all fixed)																					58
Operating profit																				$	127
Actual	Chewy					Chunky							Choco-Lite						Total
Sales-units (in thousands)	2,000 bars						2,500 bars						5,100 bars						9,600 bars
Sales-dollars (in thousands)		$	120					$	500					$	1,000					$	1,620
Variable costs			68						427						842						1,337
Contribution margin		$	52					$	73					$	158					$	283
Manufacturing fixed cost			36						37						57						130
Product margin		$	16					$	36					$	101					$	153
Marketing and administrative costs (all fixed)																					38
Operating profit																				$	115

Industry volume was estimated at 96.1 million bars for budgeting purposes. Actual industry volume for July was 86.490 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