REQUIRED: Construct the master budget for the period AND prepare a profit variance analysis

A new accounting intem at Gibson Corporation lost the only copy of this period's master budget. The CFO wants to evaluate performance for this period but needs the master budget to do so. Actual results for the period follow. Sales volume Salou covene Variable conta Manufacturing Marketing and administrative Contribution margin Fixed costo Manufacturing Marketing and administrative Operating profit 140,000 units 6784,000 172,480 70.560 5540,960 212,800 114,400 $213.760 The company planned to produce and sell 113,400 units for $5.00 each. At that volume, the contribution margin would have been $396,900 Variable marketing and administrative costs are budgeted at 10 percent of sales revenue Manufacturing fixed costs are estimated at $2.00 per unit at the normal volume of 113,400 units. Management notes. "We budget an operating profit of $1.00 per unit at the normal volume