The St. Francis furniture company had the following contribution margin income statement for last year.

Sales (400,000) $2,440,000

Variable Costs:

Manufacturing $1,060,000

Marketing and Administrative $748,000 $1,808,000

contribution margin $632,000

fixed costs

manufacturing $400,000

marketing and administrative $200,000 $600,000

operating profit $32,000

the budget for last year was based on production and sales of 375,000 units at an average selling price of $6. at the volume, variable manufacturing costs were budgeted to be $2.50 per unit and variable marketing and administrative costs were budgeted performance, the company would have reported an operating profit of $62,500.

What would a flexible budget look like while including the calculation of variances based on the actual results.