The master budget at Cherrylawn Corporation at the beginning of the year was based on sales of 275,000 units with revenues of $3,300,000. Total variable costs were budgeted at $1,925,000 and fixed costs at $950,000. During the period, actual production and actual sales were 255,000 units. The actual revenues were $3,442,500. Actual variable costs were $6.50 per unit. Actual fixed costs were $980,000.

Required:

Prepare a profit variance analysis.

Chegg expert: I need to know how to fill out the appropriate lines (lines that say supposed to have an answer) of this table

	Actual	Manufacturing Variances	Sales Price Variance	Flexible Budget	Sales Activity Variance	Master Budget
Sales Revenue	supposed to be an answer		supposed to be an answer	supposed to be an answer	supposed to be an answer	supposed to be an answer
Less:
Variable Costs	supposed to be an answer	supposed to be an answer		supposed to be an answer	supposed to be an answer	supposed to be an answer
Contribution margin		supposed to be an answer	supposed to be an answer		supposed to be an answer	$0
Less:
Fixed Costs	supposed to be an answer	supposed to be an answer		supposed to be an answer	supposed to be an answer	supposed to be an answer
Operating Profits	supposed to be an answer	supposed to be an answer	supposed to be an answer	supposed to be an answer	supposed to be an answer	supposed to be an answer