Candy, Inc. prepared the following static budget for January: Sales ($50 per unit) $50,000 Cost of Goods Sold ($20 per unit) 20,000 Gross Profit 30,000 Operating Expenses Variable ($5 per unit) 5,000 Fixed 17,000 Income from Operations $8,000 The following actual results of operations for the month of January resulted. Sales $47,500 Cost of Goods Sold 19,950 Gross Profit 27,550 Operating Expenses Variable 4,275 Fixed 17,000 Income from Operations $6,275 The manager of Candy, Inc. was pleased with the results of operations for January. Cost of Goods Sold was lower than expected as were variable operating expenses. The sales price remained at $50 per unit as budgeted. As chief accountant, you noted a flaw in the managers analysis. The manager compared the costs in the actual results to the static budget. Prepare a flexible budget for the month of January, and compare the flexible budget to the actual results indicating variances as favorable or unfavorable. Use the above template. Provide appropriate column headings.