Fanning Company has provided the following Year 2 data. $ 516,000 196,000 46,000 2,600 15,700 23,800 1,700 620 Budget Sales Variable product costs Variable selling expense Other variable expenses Fixed product costs Fixed selling expense Other fixed expenses Interest expense Variances Sales Variable product costs Variable selling expense Other variable expenses Fixed product costs Fixed selling expense Other fixed expenses Interest expense 8,500 U 4,900 F 1,500 U 2,000 U 320 F 490 F 140 U 150 F Required a. & b. Prepare in good form a budgeted and actual income statement for internal use. Separate operating income from net income in the statements. Actual 507,500 191,100 FANNING COMPANY Internal Income Statement for Year 2 Budget Sales $ 516,000 $ Variable expenses: Product costs $ 196,000 $ Selling expenses 46,000 Other expenses 2.600 Contribution margin 271,400 Fixed expenses: Product costs $ 15,700 Selling expenses 23,800 Other expenses 1,700 Operating income (loss) Interest expense 620 Net income (loss)