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 (3,000 pools) 210,000 $210,000 Variable expenses: 38,220 49,235 15,000 15,000 Variable cost of goods sold Variable selling expenses 53,220 64,235 Total variable expenses Contribution margin 156.780 145.765 Fixed expenses: Manufacturing overhead 66,000 66,000 Selling and administrative 81,000 81,000 Total fixed expenses 147,000 147,000 9,780 (1,235) Net operating income (loss) *Contains direct materials, direct labor, and variable manufacturing overhead. Budgeted Actual Sales (3,000 pools) 210,000 $210,000 Variable expenses: 38,220 49,235 15,000 15,000 Variable cost of goods sold Variable selling expenses 53,220 64,235 Total variable expenses Contribution margin 156.780 145.765 Fixed expenses: Manufacturing overhead 66,000 66,000 Selling and administrative 81,000 81,000 Total fixed expenses 147,000 147,000 9,780 (1,235) Net operating income (loss) *Contains direct materials, direct labor, and variable manufacturing overhead