A B C D E F Old World Fudge Company 2 Flexible Budget Performance Report: Sales and Operating Expenses 3 For the Year Ended December 31 Flexible Budget Flexible Volume Master 4 Actual Variance Budget Variance Budget Sales volume (number of cases sold) 13,200 13,200 12,500 Sales revenue ($33 per case) $ 430, 100 $ 435,600 $ 412,500 7 Less variable expenses: 8 Sales expense ($2 per case sold) $ 24,500 $ 26,400 $ 25,000 9 Shipping expense ($3 per case sold) 37,000 39,600 37,500 10 Contribution margin 368,600 369,600 350,000 11 Less fixed expenses: 12 Salaries 10,700 10,500 10,500 13 Office rent 3,500 3,500 3,500 14 Operating income $ 354,400 $ 355,600 $ 336,000