The CFO of Dubai Company, Nasser Ali Sultan, has come to you for help. The actual information pertains to the month of June. As a part of the budgeting process, Dubai Company developed the following static budget for June. Dubai is in the process of preparing the flexible budget and understanding the results.

Items	Actual Results	Flexible Budget Variances	Flexible Budget	Sales Volume Variances	Static Budget
Sales volume (in units)	18,000	0	?	?	20,000
Sales revenues	$900,000	180,000F	?	80,000 U	?
Variable costs	360,000	?	324,000	40,000 F	?
Contribution margin	540,000	?	?	44 U	463,000
Fixed costs	240,000	?	?	0	300,000
Operating Income	$300,000	?	?	?	$163,000

Complete the above schedule and compute level 2 analyses of variances to determine if it was favorable or unfavorable.