Skunk Works Co. provides the following fixed budget data for the year:

Sales (20,000 units) . $600,000

Cost of sales:

Direct materials .. $200,000

Direct labor 160,000

Variable overhead .. 60,000

Fixed overhead .. 80,000 500,000

Gross profit . $100,000

Operating expenses: Fixed .. $12,000

Variable . 40,000 52,000

Income from operations .. $ 48,000

The companys actual activity for the year follows:

Sales (21,000 units) . $651,000

Cost of goods sold:

Direct materials .. $231,000

Direct labor 168,000

Variable overhead .. 73,500

Fixed overhead .. 77,500 550,000

Gross profit . $101,000

Operating expenses: Fixed . 12,000

Variable . 39,500 51,500

Income from operations . $ 49,500

Required: Prepare a flexible budget performance report for the year using the contribution margin format.