Dunlop Company has provided the following for the year.

Budget
Sales ........................................................ $400,000
Variable product costs ............................ 163,000
Variable selling expense ........................... 40,000
Other variable expenses ............................. 3,000
Fixed product costs ................................... 10,500
Fixed selling expense ................................ 20,000
Other fixed expenses ................................. 1,600
Interest expense ............................................ 650

Variances

Sales .......................................................... 3,200 U
Variable product costs ............................ 2,600 F
Variable selling expense ......................... 1,250 U
Other variable expenses ............................ 600 U
Fixed product costs ..................................... 110 F
Fixed selling expense .................................. 195 F
Other fixed expenses ................................... 75 U
Interest expense ........................................... 50 F

Required

Prepare in good form a budgeted and actual income statement for internal use. Separate operating income from net income in the statements.