A retail department store used the following cost-volumerelationship were used in developing a flexible budget for thecompany for the currnet year:

yearly fixed expenses variableexpenses per sales dollar

cost of merchandisesold............................. $0.600

selling and promotionexpense.................... $210,000 0.082

building occupancyexpense....................... 186,000 0.022

buyingexpense.......................................... 150,000 0.040

deliveryexpense........................................ 111,000 0.010

credit andcollection................................. 72,000 0.002

administrativeexpense.................................. 531,000 0.003

totals...................................................... $1,260,000 $0.759

management expected to attain a sales level of $12 millionduring the current year. At the end of the year, the actualresults achieved by the company were:

net sales..............................................$10,500,00

cost of goodssold............................... 6,180,000

seliing and promoting expenses............ 1,020,000

building occupancyexpenses............... 420,000

buyingexpenses................................. 594,000

deliveryexpense................................. 183,000

credit and collectionexpense............... 90,000

administrativeexpense........................ 564,000

** write a statement evaluating the company's performance inrelation to the plan reflected in the flexible budget