Johnson Company had planned for operating income of $10 million in the master budget with a contribution margin of $3 million, but actually achieved operating income of only $7 million and a contribution margin of $2.5 million The static-budget variance for operating income is $3 million favorable. The flexible-budget variance for operating income is $3 million unfavorable The flexible-budget variance for operating income is $3 million favorable. The static-budget variance for operating income is $3 million unfavorable