Summary Explanation

Higgins Company produced 80,000 units, 8,000 more than budgeted. Production data are as follows. Except for physical units, all quatities are in dollars.

	Actual Results at Acutal Prices	Flexible-Budget Variances	Flexible Budget	Sales-Activity Variances	Static Budget
Phyiscal units	80,000	----	?	?	72,000
Sales	?	6,400 F	?	?	720,000
Variable Costs	492,000	?	480,000	?	?
Contribution margin	?	?	?	?	?
Fixed costs	?	30,000 U	?	?	150,000
Income	?	?	?	?	?

1. Fill in the unknowns.

2. Give a brief summary explanation of why the original target income was not attained