Marley Company reports the following fixed budget. It is based on an expected production and sales volume of 15,000 units.

PHOENIX COMPANYFixed BudgetFor Year Ended December 31Sales$ 3,000,000Costs Direct materials975,000Direct labor225,000Sales staff commissions60,000DepreciationMachinery300,000Supervisory salaries200,000Shipping225,000Sales staff salaries (fixed annual amount)250,000Administrative salaries411,000DepreciationOffice equipment195,000Income$ 159,000

Marley Company reports the following actual results. Actual sales were 18,000 units.

Sales (18,000 units)$ 3,648,000Costs Direct materials$ 1,185,000Direct labor278,000Sales staff commissions63,000DepreciationMachinery300,000Supervisory salaries210,000Shipping261,500Sales staff salaries (fixed annual amount)268,000Administrative salaries419,000DepreciationOffice equipment195,000Income$ 468,500

Required:

Prepare a flexible budget performance report for the year.