The budgeted and actual results of Crunch for September were as follows. The company uses a marginal costing system. There were no opening or closing inventories.

fixed budget actual

Sales and production 1,000 units 700 units

Sales 40,000 28,400

Variable cost of sales

Direct materials 16,000 10,400

Direct labour 8,000 6,200

Variable overhead 4,000 3,000

28,000 19,600

Contribution 12,000 8,800

Fixed costs 5,000 5,400

Profit/(loss) 7,000 3,400

what is the answer to this budget?