Flexible Budget Flexible Actual Variance Budget Volume Variance Master Budget Sales volume (number of cases sold) 13,200 13,200 12,500 376,800 $ 382,800 362,500 Sales revenue ($29 per case) Less variable expenses Sales expense ($3 per case sold) Shipping expense ($1 per case sold) 36,800 12,700 327,300 39,600 13,200 330,000 37,500 12,500 312,500 Contribution margin Less fixed expenses: 10,200 1,500 315,600 8,900 1,500 $ 319,600 8,900 1,500 302,100 Salaries Office rent Operating income