Question:
Preparing an income statement performance report Stenback Pro Company managers received the following incomplete performance report:
|
STENBACK PRO COMPANY
Income Statement Performance Report
Year Ended July 31, 2012
|
|
|
Actual Results at
Actual Prices
|
Flexible Budget
Variance
|
Flexible Budget for
Actual Number of
Units Sold
|
Sales Volume
Variance
|
Static (Master)
Budget
|
|
Output units
|
39000
|
-
|
39000
|
3,000F
|
-
|
|
Sales revenue
|
218000
|
-
|
$218000
|
$ 27,000F
|
-
|
|
Variable expenses
|
84,000
|
-
|
81,000
|
10,000 U
|
-
|
|
Contribution margin
|
$ 134,000
|
-
|
$ 137,000
|
$ 17,000 F
|
-
|
|
Fixed expenses
|
108,000
|
-
|
101,000
|
0
|
-
|
|
Operating income
|
$ 26,000
|
-
|
$ 36,000
|
$ 17,000 F
|
-
|
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.