Actual Budget Variance Sales $ 96,700 $ 100,000 $ -3,300 Less sales discounts 975 1,200 -225 Net sales 95,725 98,800 -3,075 Operating Expenses Selling Expenses Sales salaries 5802 6,000 -198 Advertising and promotion 7000 8,000 -1,000 Total selling expenses 12,802 14,000 -1,198 Administrative expenses Office salaries 26,702 24,000 2,702 Office supplies 6,490 5,000 1,490 Rent 19,000 18,000 1,000 Insurance 2,490 2,400 90 Telephone 2,970 3,000 -30 Utilities 4,970 3,600 1,370 Auto expense 5,880 6,000 -120 Depreciation on computer equipment 6,975 3,840 3,135 Interest expense 1,800 1,200 600 Total administrative expenses 77,277 67,040 10,237 Total operating expenses 90,079 81,040 9,039 Net income $ 5,645 $ 17,760 $ -12,114