The Berry Bowl sells fresh fruit cups from a cart. The owner want to compare this quarter$$s results with those for last quarter. The owner believes that the last quarter's operations were "what we expected given the number of cups we sold." Assume that the following information is provided:

Last Quarter This Quarter

Number of cups $7,0007,450$

Revenues $ $28,420$ $ $29,055$

Variable costs $10,78012,410$

Contribution margin $ $17,640$ $ $16,645$

Required:

a$.$ Compute the flexible budget and sales activity variance and prepare a profit variance analysis. $($Hint: Use last quarter as the master budget and this quarter as $$actual$.)$

b$.$ What impact did the changes in number of cups sold and average revenues $($i$.$e$.,$ sales price$)$ have on The Berry Bowl's contribution margin?