Jaan Corporation used the following data to evaluate its current operating system. The company sells items for $20 each and used a budgeted selling price of $20 per unit.

	Actual	Budgeted
Units sold	200,000 units	203,000
Variable costs	$1,250,000	$1,500,000
Fixed costs	$925,000	$900,000

Required:

Prepare a Level 1 static-budget variance analysis using an income statement in contribution margin format. Use the following three column headings:

Actual Results, Static Budget, Static-budget Variance.