1. Venus Cosmetics
   • Sales price: $22.00 per unit
   • Variable manufacturing cost: $11.00 per unit
   • Fixed manufacturing cost: $5,500 total
   • Fixed selling and administrative cost: $1,700 total
   • Planned production and sales: 3,500 units
   • Actual production and sales: 3,700 units
   • Required:
     1. Prepare the pro forma income statement for the master budget.
     2. Evaluate the performance using the flexible budget.