Anniston Co. planned to produce and sell 40,000 units. At that volume level, variable costs are determined to be $320,000 and fixed costs are $30,000. The planned selling price is $10 per unit. Anniston actually produced and sold 42,000 units. Using a contribution margin format for each of the two items below. Use the template below for all of these type of problems. You must show how you calculated each number for credit.

(a) Prepare a fixed budget income statement for the planned level of sales and production (Hint: Based on 40,000 units sold). (3 points)

Sales $

Variable costs $

Contribution margin $

Fixed costs $

Operating income $

(b) Prepare a flexible budget income statement for the actual level of sales and production (Hint: Based on 42,000 units sold). (3 points)

Sales $

Variable costs $

Contribution margin $

Fixed costs $

Operating income $