Perez Company has provided the following Year 2 data.

Budget
Sales	$ 505,000
Variable product costs	202,000
Variable selling expense	46,000
Other variable expenses	2,700
Fixed product costs	16,300
Fixed selling expense	23,600
Other fixed expenses	1,500
Interest expense	630
Variances
Sales	8,500	Unfavorable
Variable product costs	4,200	Favorable
Variable selling expense	1,800	Unfavorable
Other variable expenses	1,300	Unfavorable
Fixed product costs	280	Favorable
Fixed selling expense	480	Favorable
Other fixed expenses	110	Unfavorable
Interest expense	90	Favorable

Required

Prepare a budgeted and actual income statement for internal use.

PEREZ COMPANY
Internal Income Statement for Year 2
	Budget	Actual
Sales
Variable expenses:
Product costs
Selling expenses
Other expenses
Contribution margin
Fixed expenses:
Product costs
Selling expenses
Other expenses
Operating income (loss)
Interest expense
Net income (loss)