Stuart Publications established the following standard price and costs for a hardcover picture book that the company produce

Stuart planned to make and sell $39,000$ copies of the book.

Required:

a$.-$ d$.$ Prepare the pro forma income statement that would appear in the master budget and also flexible budget income stater

assuming production volumes of $38,000$ and $40,000$ units. Determine the sales and variable cost volume variances, assuming

is actually $40,000$ units. Indicate whether the variances are favorable $($F$)$ or unfavorable $($U$).$

Note: Select "None" if there is no effect $($i$.$e$.,$ zero variance$).$