Table 2. Original Budgeted Profit for Year Ended 31 December

Units sold 3,900,000

Budget item (GBP) Per unit Total

Sales revenues - Europe 25.00 97,500,000

Variable costs

Direct materials 4.68 18,252,000

Direct labour 5.90 23,010,000

Variable production overhead 3.90 15,210,000

Variable selling expenses 2.00 7,800,000

Total variable costs 16.48 64,272,000

Income

Contribution from pumps 8.52 33,228,000

Net income from repairs and maintenance 1,050,000

Profits before fixed costs 34,278,000

Fixed costs

Fixed production overhead 5,551,000

Fixed selling expenses 8,567,000

Fixed administration costs 9,585,000

Total fixed costs 23,703,000

Budgeted profit for the year 10,575,000

Calculate (a) the total budgeted profits for sales of 4,200,000 units and 4,500,000 units and (b) the sales volume variance (differences in profits from the original budgeted profits) for sales of 4,200,000 units and 4,500,000 units.