Preparing an income statement performance report Stenback Pro Company managers received the following incomplete performance report:
|
STENBACK PRO COMPANY |
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|
Actual Results at |
Flexible Budget |
Flexible Budget for |
Sales Volume |
Static (Master) |
|
|
Output units |
39000 |
39000 |
3,000F |
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|
Sales revenue |
218000 |
$218000 |
$ 27,000F |
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|
Variable expenses |
84,000 |
81,000 |
10,000 U |
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|
Contribution margin |
$ 134,000 |
$ 137,000 |
$ 17,000 F |
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|
Fixed expenses |
108,000 |
101,000 |
0 |
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|
Operating income |
$ 26,000 |
$ 36,000 |
$ 17,000 F |
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Requirement
1. Complete the performance report. Identify the employee group that may deserve praise and the group that may be subject to criticism. Give your reasoning.