1 Given Data P16-47 3 PROFIT VARIANCE ANALYSIS Reported Income Statement Manufacturing Administrative 2,250 units) Variance $117,000 Marketing and Sales Price Variance Flexible Budget a units $121,500 Sales Activity Variance Master Budget (2,400 units Variance Sales revenue $2,280 10 Variable manufacturing costs 11 Variable marketing and administrative costs(h) 12 Contribution margin 13 $3,600 () (k)$14,400 $74,400 4 Favorable variances are positive: unfavorable variances are negative 7 Reported Income Marketing and Flexible SalesMaster Budget Statement Manufacturing Administrative Sales Price Budget (units) Activity Variance (2,400 units 10 11 12 13 14 15 16 17 18 19 20 21 250 units Variance Variance Variance Sales revenue Variable manufacturing costs Variable marketing and administrative Contribution margin $ 117,000 S 121,500 3,600 2,280 14.400 74.400 All computations should be made in the yellow answer cells Begin your computation chain with Flexible Budget (units) The next computation is for Sales Price Variance, which is computed by subtracting Flexible Budget Sales revenue (a given) from Reported Income Statement Sales revenue (another given) Continue on to the next logical calculation