Assume the actual results for January 2021 are as follows, and that no additional staff were hired:

Sales (2,200 bales) $121,000

Commissions expense 10,890

Cost of goods sold 54,450

Depreciation 5,000

Salaries expense 8,500

Other operating expenses 2,000

Interest expense 11,125

Income tax expense 7,259

Analyze the variances and suggest one possible explanation for each one.

Assume that flexible budget amounts for fixed expenses are the same as master budget amounts.