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 Actual Sales (7,000 pools) 235,000 235,000 Variable expenses: 78,540 96,420 Variable cost of goods sold Variable selling expenses 18,000 18,000 Total variable expenses 96,540 114,420 Contribution margin 138,460 120,580 Fixed expenses: 54,000 54,000 Manufacturing overhead 69,000 69,000 Selling and administrative Total fixed expenses 123,000 123,000 Net operating income (loss) 15,460 (2,420) *Contains direct materials, direct labor, and variable manufacturing overhead