Ricard Packing Products asks you to compare Net Income for the company's Flexible Budget with the Actual Results. Consider the following: Planned sales: 10,000 units with a sale price = $50.00 Actual sales: $495,000 with a sale price = $55.00 Contribution margin %: Plan = 32.0%; Actual = 34.0% Fixed expenses: Plan = $90,000; Actual = $120,000.
Compute the change in Net Income between the Flexible Budget and Actual Results.