The May 2009 income statement for Trajan Inc. is shown below:
|
Actual |
Static Budget |
|
|
Units sold |
110 |
100 |
|
Sales |
$3,200 |
$3,000 |
|
Variable expenses |
$1,920 |
$1,800 |
|
Contribution margin |
$1,280 |
$1,200 |
|
Fixed expenses |
$680 |
$700 |
|
Operating income |
$600 |
$600 |
Required:
a) Determine what the operating income should have been for the actual units sold.
b) Reconcile the difference between static budget and actual operating income.