Problem 2 (20%) To: Ben Lamden, Junior Accountant, Top Products Division From: Lisa Walters, Production Manager, Top Products Division Date: January 25, 20x Subject: More Analysis Needed Hello Ben, I would like to thank you for sending me the fiscal year-end information for our main Top Products line. I first want to confirm the data you previously provided. Per your note, we began the fiscal year expecting to sell 36,000 units at $12.00 per unit. The budgeted contribution margin was 16% and fixed costs were budgeted at $28,000. Actual sales for the year were 37,500 units, which totaled S487.500. Actual variable and fixed costs were $405,000 and $36,500, respectively. Please let me know if any of the data I have written above is incorrect. I would like you to now take this a few steps further. From an operating income perspective. I would like to know how we actually performed versus how we expected to perform. Then within that I would like to know how much of that performance related to higher unit sales versus how much related to other factors. I recommend using a flexible budget analysis. which will allow you to look at sales and costs at a per unit level I think this analysis will help us determine what the factors are that are driving the differences between actual versus expected performance. If you could take a look at this over the next day or so then I will set up a meeting for tomorrow afternoon for us to discuss. Thank you! Lisa Complete the following: Actual Results Flexible Budget Master Budget Performance Report Units Sales Variable Costs Contribution Margin Fixed Costs Operating Income Favorable/ Unfavorable Calculate Amount Total Variance Volume Variance Flexible Budget Variance