Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. The plant has been experiencing problems as shown by its June contribution format income statement below: Budgeted Actua Sales (6,000 pools) 225,000 225,000 Variable expenses: Variable cost of goods sold* 73,620 88,700 Variable selling expenses 17,000 17,000 Total variable expenses 90,620 105,700 Contribution margin 134,380 119,300 Fixed expenses: Manufacturing overhead 53,000 53,000 Selling and administrative 68,000 68,000 Total fixed expenses 121,000 121,000 Net operating income (loss) 13,380 (1,700) *Contains direct materials, direct labor, and variable manufacturing overhead