Problem 17-43 Sales Mix and Quantity Variances (LO 17-3) 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 years 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 4.000 bars8000bs Chewy S960 S120 S 88 Total 16,000 bars $3,200 2,660 $ 540 $320 220 $100 $1,920 1,600 $ 320 Contribution margin S 65 S 262 $ 415 Product margin Marketing and administrative costs (all fixed) Operating profit $ 355 Sales-units (in thousands) Sales-dollars (in thousands) Variable costs 3,000 bars $180 4,000 bars 8,200 bars 15,200 bars $3,060 S960 S120 S 80 $1,920 1,6412,574 $ 279 Contribution margin Manufacturing fixed cost Product margin Marketing and administrative costs (all fixed) $ 486 S 352 $ 315 394055134 S 48 S 224 Operating profit Industry volume was estimated at 85.4 million bars for budgeting purposes. Actual industry volume for July was 78.0 million bars. Required Break down the total activity variance into sales mix and quantity parts. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.)