Prepare a flexible budget for Baby Dream for the year ending 30 June 2019. What does flexible budget figures tell about Baby Dream performance?

Baby Dream Year Ended 30 June 2019

		budget		flexible budget		actual	variance
Hours charged		33,600				29,507	(4,093)
Income Statement
	Sales revenue	5,712				4,997	(715)
	Direct Labour	(3,102)				(2,750)	352
	Contribution margin	2,610				2,247	(363)
	Non-variable expenses
	indirect labour	(1,064)				(1,060)	4
	Information technology	(75)				(72)	3
	rent	(510)				(510)	0
	utilities	(25)				(23)	2
	training	(65)				(64)	1
	travel & accomodation	(336)				(335)	1
	repair & maintenance	(35)				(33)	2
	staff amenities	(80)				(76)	4
	depreciation	(203)				(198)	5
	general office expenses	(23)				(21)	2
operating profit		194				(145)	(339)