Rosco Inc. prepared the following static budget for May and would like to determine its flexible budget based on actual activity levels.

Static budget

Activity level (in units ) 950 units

Sales $ 95,000

Variable costs:

Materials $23,750

Labour $19,950

Total variable costs $43,700

Fixed costs:

Rent $31,200

Total variable and fixed costs $74,900

Net income $20,100

Required: Complete the flexible budget income statement for May for actual production of 982 units. (4 marks)