Actual (based on actual of 540 units) Master Budget (based on budgeted 600 units) Sales revenue $88,320 $96,000 Less Manufacturing costs Direct labor 13,632 14,400 Materials 11,520 13,440 Variable overhead 7,872 9,600 Marketing 5,088 5,760 Administrative 4,800 4,800 Total variable costs $ 42,912 $48,000 Contribution margin $45,408 $48,000 Fixed costs Manufacturing 4,665 4,800 Marketing 9,984 9,600 Administrative 9,561 9,600 Total fixed costs $ 24,210 $24,000 Operating profits $ 21,198 $24,000