Managers at Wildhorse, Inc. were cautiously optimistic about receiving their bonuses at year-end. Periodic communications from the top noted that the sales team had been exceeding targets throughout the year, which led to steady production activity to keep pace. Managers knew that a company profit margin of 11% meant bonuses for everyone. The production crew had been managing costs well but wasn't sure where final costs would land with the sales volume higher than planned. The following information outlines actual and budgeted results for the year. Actual Master Budget Sales volume (units) 52,100 45,400 Selling price $14.70 $14.40 DM cost/unit $3.30 $3.20 DL cost/unit $1.75 $1.80 Variable-MOH cost/unit $1.60 $1.60 Variable SG&A cost/unit $0.60 $0.60 Fixed-MOH cost $203,000 $193,700 Fixed SG&A cost $104,000 $100,900 (a) Prepare Wildhorse's flexible budget and actual income statement for the year. Sales volume Per unit Sales $14.70 $ Variable costs: Direct materials 3.30 Direct labor 1.75 Actual Flexible Budget Per unit 52,100 52,100 $14.40 3.20 1.80 Variable-MOH 1.60 1.60 Variable SG&A 0.60 0.60 Contribution margin $7.45 $7.20 Fixed costs: Fixed-MOH Fixed SG&A Operating income (b) Determine the flexible budget variances and sales price variance, noting the amount and sign for each. Sales Variable costs: Direct materials Direct labor Variable-MOH Variable SG&A +A Contribution margin Fixed costs: Fixed-MOH Fixed SG&A Operating income tA $ Flexible Budget Variance Favorable Unfavorable Neither Favorable nor Unfavorable < > (d1) Did the company hit its profit margin goal? (Round answers to 2 decimal places, e.g. 15.25%.) Profit margin Actual Flexible Budget % % The company its 11% profit margin goal.