As sales manager, Hank Short was given the following static budget report for selling expenses in the Winter Sports Department of Jennings Outdoor Company for the month of November.

Jennings Outdoor Company Winter Sports Department Budget Report For the Month Ended November 30, 2020
		Budget		Actual			Difference Favorable F Unfavorable U
Sales in units		4,000		4,400			400	F
Variable expenses
Sales commissions		$120,000		$124,600			$4,600	U
Advertising expense		40,000		42,400			2,400	U
Travel expense		192,000		204,600			12,600	U
Demonstration models given out		92,000		79,600			12,400	F
Total variable		444,000		451,200			7,200	U
Fixed expenses
Rent		8,000		8,000			-0-
Sales salaries		59,700		59,700			-0-
Office salaries		40,400		40,400			-0-
Depreciation vans (sales staff)		2,300		2,900	*		600	U
Total fixed		110,400		111,000			600	U
Total expenses		$554,400		$562,200			$7,800	U

*The increase in depreciation was due to a new vehicle that had to be purchased as a result of an accident driving on snowy roads on the way to visit a customer. As a result of this budget report, Hank was called into the presidents office and congratulated on his fine sales performance. He was reprimanded, however, for allowing his costs to get out of control. Hank knew something was wrong with the performance report that he had been given. However, he was not sure what to do, and comes to you for advice.

After Hank because familiar with the flexible budget report, he began to analyze the numbers. Hank feels that sales can be increased if Jennings Outdoor Company would increase sales commissions to $31.00 per unit. This would allow them to reduce advertising expense to $8.00 per unit. Hank thinks that these changes will motivate the sales staff to sell at least 5,500 units. He is allowed to try his plan in December and had the following results. Jennings Outdoor Company Winter Sports Department Results For the Month Ended December 31, 2020 Sales in units 5,500 Variable expenses Sales commissions $164,200 Advertising expense 42,000 Travel expense 256,700 Demonstration models given out 104,700 Total variable 567,600 Fixed expenses Rent 8,000 Sales salaries 59,700 Office salaries 40,400 Depreciation vans (sales staff) 2,900 Total fixed 111,000 Total expenses $678,600 Prepare a budget report based on flexible budget data. The new depreciation amount has been included in the budgeted fixed costs. (Round per unit answers to 2 decimal places, e.g. 15.25.)