As the new accountant for Cohen & Company, you have been asked to provide a succinct analysis of financial performance for the year just ended. You obtain the following information that pertains to the companys sole product:

	Actual	Master Budget
Units sold	35,000	40,000
Sales	$ 384,000	$ 470,000
Variable costs	214,000	278,000
Fixed costs	137,000	135,000

Required:

1. What was the actual operating income for the period?

2. What was the companys master budget operating income for the period?

3. (a) What was the total master budget variance, in terms of operating income, for the period? (b) Is this variance favorable or unfavorable? (If a variance has no amount, select "None" in the corresponding dropdown cell.)

4. The total master budget variance for a period can be decomposed into a total flexible budget variance and a sales volume variance. (a) What was the total flexible-budget variance for the period? (b) Was this variance favorable or unfavorable? (c) What was the sales volume variance for the period? (d) Was this variance favorable or unfavorable? (If a variance has no amount, select "None" in the corresponding dropdown cell.)

\begin{tabular}{|c|l|l|l|} \hline & & & \\ \hline 1. & Actual operating income & & \\ \hline 2. & Master budget operating income & & \\ \hline 3. & Total master budget variance & & \\ \hline 4. & Total flexible-budget variance & & \\ \hline & Sales volume variance & & \\ \hline \end{tabular}