Sunshine Company produces and sells a well-known brand of health drink through two distribution channels, namely, wholesale and retail, in Hong Kong. The company's managing director is conducting a business review on the products for the year 2019. The management accountant has provided the budgeted and actual data as follows: In thousand Budget Wholesale Bottle Actual Retail Wholesale 360 1080 57,600 124,200 32,400 81.000 25,200 43,200 Revenue Variable costs Total 1440 181.800 113,400 68,400 Retail 4 80 72.000 43,200 28,800 86,400 54,000 32,400 Total 1,200 158,400 97,200 61,200 Contribution margin Fixed costs Operating income 20,000 5,200 10,000 33,200 30,000 38.400 20,000 8,800 10,000 22,400 30,000 31,200 At the beginning of 2019, the managing director expected the total sales in Hong Kong's health drink market to be 3,000,000 bottles. During the review, a market research indicates that the total actual sales for the year were 3.200,000 bottles. Required: (10 marks) (a) Compute the flexible budget variance and sales volume variance for each channel and for the total company, (6 marks) (b) Compute the sales-mix variance and the sales-quantity variance W CTS 43,200 variable costs Contribution margin 32,400 25,200 81,000 43,200 ,400 68,400 34,000 32,400 47,200 61,200 28,800 30,000 Fixed costs Operating income 20,000 5.200 10,000 33,200 30,000 38,400 20,000 8,800 10,000 22,400 31,200 At the beginning of 2019, the managing director expected the total sales in Hong Kong's health drink market to be 3,000,000 bottles. During the review, a market research indicates that the total actual sales for the year were 3,200,000 bottles. Required: (a) Compute the flexible budget variance and sales volume variance for each channel and for the total company. (10 marks) (b) Compute the sales-mix variance and the sales-quantity variance for each channel and for the total company. (6 marks) (c) With reference to the answer in (b), explain the sales volume variance. (3 marks) (d) Compute the market share and market-size variances. Comment on the results. ( marks) Compute all variances in terms of contribution margin. Indicate favourable variance with 'F' and unfavourable variance with 'U