Review the following schedule: (A) (B) (C) (D) (E) Flexible Master Volume Flexible Actual budget budget variances budget results variances (C- A) (E - C) Sales - units 20,000 2,000 22,000 0 22,000 Sales - revenue $600,000 $60,000 $660,000 $(22,000) $638,000 Variable expenses COGS (360,000) (36,000) (396,000) (18,700) (414,700) Commissions (6,000) (600) (6,600) (6,160) (12,760) (366,000 (36,600) (402,600) (24,860) (427,460) Contribmargin 234,000 23,400 257,400 (46,860) 210,540 Fixed expenses Salaries (50,000) (10,000) (60,000) (5,000) (65,000) Other operating (40,000) O (40,000) (10,000) (50,000) Depreciation (10,000) 0 10,000) 0 (10,000) (100,000) (10,000) (110,000) (15,000) (125,000) Inc. from operations 134,000 13,400 147,400 (61,680) 85,540 Interest expense (20,000) 0 (20,000) (5,000) (25,000) Inc. before taxes 114,000 13,400 127,400 (66,860) 60,540 Income taxes (22,800) (2,680) (25,480) 10,345 (15,135) Net income $91,200 $10,720 $101,920 $(56,515) $45,405 Required: Provide plausible explanations for the volume and flexible budget variances