The manager of Fritz Fabricators Ltd has just reviewed the income statement for the previous quarter and is concerned by the profit earned. Her main concern is the significant difference between the planned contribution margin and the one actually achieved. The company sells only one product. A summary of contribution margins is shown below:

	Actual			Budget
Sales — units	32000			33000
Sales — dollars Variable expenses	$	217600 121600		$	221100 130350
contribution margin	$	96000		$	90750

Required

Calculate the sales price, sales volume and variable expense variances for the quarter. Explain the variation in contribution margin to the manager.