Toyworld manufactures and sells a line of toys. The toys are primarily distributed through department stores. As president of Toyworld, you wanted to analyze Toyworld's profitability. Your capable assistant provided you with the following data:

Actual budget------Static/Master budget
Selling price $20/ $21
Variable manu cost per unit----$11/$12
Variable marketing and admin total expenses---- $9,000(5% of sales revenue)/ $11,550
Fixed total manu cost---$34,500 / $36,000
Fixed total marketing and admin expenses----$40,000 / $44,000
Sales volumes in units---$9,000 / $10,000

Required:

a) Your assistant has requested you to complete the "Flexible Budget" and "Static/Master Budget" columns of the analysis, reproduced below (She had to attend to an out-of-town emergency):

Actual results Flexible budget static/master budget
units sold 10,000
revenues(sales) 210,000
variable expenses:
Manufacturing 120,000
Marketing& Admin 11,500
Total 131,550
Contribution Margin 78,450
Fixed expenses:
Manufacturing 36,000
Marketing & Admin 44,000
Total 80,000
Operating income(loss) ($1,550)