Green Pastures is a 400 -acre farm on the outskirts of the Kentucky Bluegrass, 5pecializing in the boarding of broodrares and their. foals. A recent economic downturn in the thoroughbred industry has made the boarding business extremely competitive. To meet the competition, Green Pastures planned in 2020 to entertain clients, advertise more extensively, and absorb expenses formerly paid by elients such as veterinary and blacksmith fees. The budget report for 2020 follows. As shown, the static income statement budget for the year is based on an expected 20,600 boarding days at $25 per mare. The variable expenses per mare per day were budgeted: feed $5. veterinary fees $3, blacksmith fees $0.25, and supplies $0.55. All other budgeted expenses were either semifuxed or fixed. During the year, management decided not to replace a worker who quit in March, but it did issue a new advertising brochure and did more entertaining of clients. \begin{tabular}{lrrr} Blacksmithfees & 4,685 & 5.150 & 465 Favorable \\ Supplies & 9,567 & 11.330 & 1.763 Favorable \\ Total variable expenses & 167.690 & 181,280 & 13.590 Favorable \\ \hline Contribution margin & 189,510 & 333.720 & 144.210 Unfavorable \end{tabular} Les5: Fixed expenses GREEN PASTURES Income Statement Flexible Budget Report For the Year Ended December 31, 2020 Boarding days (BD) eTextbook and Media GREEN PASTURES Income Statement Flexible fudget Report For the Year Ended December 31, 2020 Difference Fivorable Untavorable Neither tworable nor unfaworable