Vilano Company developed the following static budget for June. Vilano is in the process of preparing the flexible budget and understanding the results. Actual Results Flexible Budget Static Budget Sales volume (in units) 31,000 27,500 Sales revenues $1,120,500 $1,320,000 Variable costs $590,000 $687,500 Contribution margin $540,000 $686,090 Fixed costs $280,000 $300,000 Operating profit $264,700 $416,590 Develop the flexible budget. What is the variable cost for the flexible budget? $540,000 $300,000 $413,000 O $275,000