Flexible Budget SAles Actual Variance Flexible Variance Budget Units sold 14000 0 14000 4000 18.000 $686,000 Sales Revenue 14000 $672,000 (192000) $864,000 Variable Costs $432,000 33156 U $398.844 (113956) F $512,800 Contribution Margin $254,000 (19156) F $273,156 (78044) U $351,200 Fixed Costs $260,000 O U $260,000 0 $260,000 Operating Income (7,200) 274400 F ($267,200) 358400 U 91,200 This report is more appropriate as it takes into account the actual amount of units sold. 5. Prepare a comprehensive variance analysis