Scenario 4 Dynamic Toys manufactures and sells a line of toys that are primarily distributed through department stores. As the controller for Dynamic Toys. you want to analyze Dynamic Toys' protability. See below for key data and a static budget that was created by your assistant controller. The management team would like to better understand why they did not meet their budget given that they had higher sales than anticipated. Dynamic Toys Staticlmaster Actual results Flexible budget budget Units sold 10,000 10,000 9,000 Selling price, per unit $ 21 5 20 5 20 Revenue (sales) 210,000 200,000 180,000 Variable expenses: Manufacturing 120,000 110,000 99,000 Marketing and administration 11 550 10 000 _ 9 000 (Note 1) ' ' Total variable expenses 131 550 120 000 108 000 Contribution margin 78 450 80 000 72 000 Fixed expenses: Manufacturing 36,000 34,500 34,500 Marketing and administration 44 000 40 000 40 000 Total fixed expenses 80 000 74 500 74 500 Operating income (loss) $ (1,5501 $ 5,500 $ (2,500) Note 1: The marketing and administration cost for the staticlmaster budget was assumed to be 5% of sales