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)	2,000 bars						2,000 bars						4,000 bars						8,000 bars
Sales-dollars (in thousands)		$	220					$	440					$	720					$	1,380
Variable costs			160						380						560						1,100
Contribution margin		$	60					$	60					$	160					$	280
Manufacturing fixed cost			45						34						58						137
Product margin		$	15					$	26					$	102					$	143
Marketing and administrative costs (all fixed)																					60
Operating profit																				$	83
Actual	Chewy					Chunky							Choco-Lite						Total
Sales-units (in thousands)	1,400 bars						2,000 bars						4,200 bars						7,600 bars
Sales-dollars (in thousands)		$	84					$	440					$	720					$	1,244
Variable costs			45						390						565						1,000
Contribution margin		$	39					$	50					$	155					$	244
Manufacturing fixed cost			37						37						59						133
Product margin		$	2					$	13					$	96					$	111
Marketing and administrative costs (all fixed)																					47
Operating profit																				$	64

Industry volume was estimated at 84.0 million bars for budgeting purposes. Actual industry volume for July was 77.280 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.

a. Sales Price variance :

Sales Activity variance :

b. Market share variance :

Industry variance :