Total actual net income is substantially higher than budgeted net income. Based on the information provided, analyze the operations for the six months ended June 30, 2021, explaining in detail the causes of the difference between budgeted and actual net income. Every significant factor should be included in your analysis.

BUDGET ANALYSIS FOR THE FIRST SIX MONTHS ENDED JUNE 30, 2021

Budget Actual Variance

Sales units 445,000. 460,000

Sales $ 1,824,500 $ 1,863,000 $38,500

Variable costs $ 694,200 $ 690,000 $ 4,200

Contribution margin $ 1,130,300 $ 1,173,000 $42,700

Fixed costs (6 mnths) $ 1,052,960 $ 1,051,600 $ 1,360

Net Income $ 77,340. $ 121,400 $44,060