Pina Colada Corp. is a 400-acre farm on the outskirts of the Kentucky Bluegrass, specializing in the boarding of broodmares and their foals. A recent economic downturn in the thoroughbred industry has led to a decline in breeding activities, and it has made the boarding business extremely competitive. To meet the competition, Pina Colada Corp. planned in 2017 to entertain clients, advertise more extensively, and absorb expenses formerly paid by clients such as veterinary and blacksmith fees. The budget report for 2017 is presented below. As shown the static income statement budget for the year is based on an expected 22,300 boarding days at $25 per mare. The variable expenses per mare per day were budgeted: feed $5, veterinary fees $3, blacksmith fees $0.25, and supplies $0.55. All other budgeted expenses were either semified or fixed. During the year, management decided not to replace a worker who quit in March, but it did issue a new advertising brochure and did more entertaining of clients, Pina Colada Corp Static Budget Income Statement For the Year Ended December 31, 2017 Actual Master Budget Difference Number of mares 52 Unfavorable Number of boarding days 19.400 22.300 2.900 Unfavorable $587.600 5557.500 $169.900 Unfavorable Less: Variable penes Feed 106.480 111.500 5.020 Favorable Veterinary fees 10.015 66.900 6.605 Favorable Blacksmiths 5.004 5.575 491 Favorable Supplies 10.382 12.265 1883 Favorable Total variable expenses 181961 196240 14.279 Favorable Contribution margin 205639 361260 155,621 Unfavorable Less: Fored expenses Depreciation 41.000 41.000 Insurance 1.000 11.000 Utilities 12.000 14.000 2.000 Favorable Repairs and maintenance 11.000 1.000 Favorable Labor 90.000 97.000 7,000 Favorable Advertisement 12.000 8.000 4000 Unfavorable Entertainment 7.000 5.000 2.000 Unfavorable Total fund expenses 183.000 187.000 4.000 Favorable Net Income $22.639 $174.260 $151621 Unfavorable 10.000 x your answer is incorrect Based on the static budget report did management do a good average or poor job of controlling expenses! Management disodio incontrolling variable expenses