Interpret a performance report (Learning Objective 2)

The following is a partially completed performance report for Surf-Side Pools, one of Kool-Time’s competitors:

Requirements 1. How many pools did Surf-Side originally think it would install in April?
2. How many pools did Surf-Side actually install in April?
3. How many pools is the flexible budget based on? Why?
4. What was the budgeted sales price per pool?
5. What was the budgeted variable cost per pool?
6. Define the sales volume variance. What causes it?
7. Define the flexible budget variance. What causes it?

SURF-SIDE POOLS Income Statement Performance Report Year Ended April 30 Actual Flexible Budget Results Flexible for Actual Sales at Actual Budget Number of Volume Static (Master) Prices Variance Output Units Variance Budget Output units (pools installed) 6 ? ? ? Sales revenue Variable expenses $102,000 ? $108,000 ? $90,000 $7,000 ? 60,000 ? 50,000 Fixed expenses 21,000 ? 25,000 2 25,000 Total expenses 78,000 ? 85,000 ? 75,000 Operating income $ 24,000 ? $ 23,000 2 $15,000