What is the percentage change of earnings by comparing actual earnings to the budgeted earnings in April 2009?

Question 9 options:

A)

4.4%

B)

4.6%

C)

-4.4%

D)

-4.6%

Table 1. Annual Budget for 2009 & Actual Income Statement for April 2009 Annual Budget 2009 April 2009 Budget Actual 8500,000 100.00 650,000 100.00 Earnings Cost of Construction Labor 1,360,000 16.00 104,000 16.00 Material 3145,0001 37.00 247,000 38.00 2,550,000 3000d 208,000 32.00 Subcontracts 2.001 13000 2.00 Other Direct Cost 170,000 7225,000 85.001 572,000 88.001 Total Direct Cost Gross Profit 1,275,000 15.00 Operating Expense Variable Vehicle Expense 127,500 o.60d 3900 O.60 Indirect Labor 51,000 Insurance (W-I-P) 201,450 2.37 15405 2.37 Interest (W-I-P) 17000 0.201 1300 0.201 Other Variable Expense 5.67 38,155 5.87 Total Variable Expense 481,950 Fixed 6000 oo7 500 0.08 Contributions 72,0001 0.85 6000 0.92 Depreciation (A&T) 3000 o04 250 0.04 Depreciation (Building) 34,000 0,40I 3000 O.46 Insurance (A&T 024 3,667 0.26 Interest (A&T) 20,000 Rent 46,000 d3600 0.55 4.06 25.000 3.85 Salaries 345,000 22.000 914 1.000 0151 Other Fixed Expense 6.33 41,017 6.31 Total Fixed Expense S38,000 109g50 12.00 7912 1218 Total Operating Expense 255,050 3.00 -1.172 -0181 Net Profit (bt) Tax (28% -328 -0.05 183,636 216 844 -013 Net Profit (at) Table 2. Past history for April earnings RAYear Aprils Earnings Years Earnings 2200 $280,000 $4,000,000 2006 $630,000 SA000,000 2007 $1,120,000 S14,000,000 200083 $800,000 S10,000,000