Hugo Construction's actual results and the Master or Static budget information for the month of May is below. Big Construction is in the process of preparing the flexible budget and understanding the results.

		Actual Results	Flexible Budget	Static Budget
	Sales volume (in units)	13,000		10,000
	Sales revenues	$275,000		$250,000
	Variable costs	200,000		170,000
	Contribution Margin	75,000		80,000
	Fixed costs	50,500		49,500
	Operating profit	$24,500		30,500

The flexible budget operating profit is: