1. Saturn Furniture
   • Sales price: $18.00 per unit
   • Variable manufacturing cost: $9.00 per unit
   • Fixed manufacturing cost: $4,500 total
   • Fixed selling and administrative cost: $1,200 total
   • Planned production and sales: 1,800 units
   • Actual production and sales: 2,000 units
   • Required:
     1. Prepare the pro forma income statement in contribution format for both the master and flexible budget.
     2. Discuss the impact of the variance on profitability.