Sky Flights offers flying lessons at the Iowa City Airport. The owner prepared the following report about the month of April 2020.
Actual | Planning Budget | Variance | |
Lessons | 251 | 235 | 16 F |
Revenue | $90,000 | $65,800 | $24,200 F |
Variable Costs (fuel) | 22,343 | 21,150 | 1,193U |
Contribution Margin | $67,657 | $44,650 | $23,007F |
Fixed cost(wages & facility rent) | 25,000 | 24,300 | 700U |
Operating Income | $42,657 | $20,350 | $22,307F |
The owner is pleased that the overall operating income is higher than planned, but quite concerned that actual variable costs exceeded the budgeted amount by over 5%. She has asked you to review the report.
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