ABM Companys fixed budget performance report for August is as follows. The $700,000 budgeted total expenses include $500,000 variable expenses and $200,000 fixed expenses. Actual expenses include $175,000 fixed expenses.

	Fixed Budget	Actual Results	Variances
Sales (in units)	8,000	7,500
Sales (in dollars)	$800,000	$780,000	$20,000 U
Total expenses	$700,000	$640,000	$60,000 F
Income from operations	$100,000	$140,000	$40,000 F