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Income statement performance report

My Toys Manufacturing projected 2009 sales of 10,000 units at $12.00 per unit. Actual sales for the year were 14,000 units at $12.50 per unit. Actual variable expenses, budgeted at $5.00 per unit, amounted to $4.80 per unit. Actual fixes expenses, budgeted at $60,000, totaled $62,500.

Prepare My Toy's income statement performance report for 2009, including both flexible budget variances and sales variances.

My Toy's Manufacturing
Income Statement Performance Report
Year Ended December 31, 2009

Actual Results Flexible Flexible Sales Static
Results at Budget Budget for Volume (Master)
Actual Prices Variances Actual Volume Variances Budget

Output 14000 units 14000 units 10000
Sales revenue 48000f
Fixed expenses 60000
Total expenses 130000
Operating income 7300f

See attached file.


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The solution explains how to prepare an income statement performance report