Snuggle Toys, Inc. had the following summarized results for the month ending July 31:
Actual Budget
Revenues $ 60,000 $ 52,000 Costs 53,600 45,600 Operating profits $ 6,400 $ 6,400 As the cost accountant, which single note to the above financial results is most appropriate in the report to management?
i. Costs as a percentage of revenues are above budget and a further scrutiny of the results might be appropriate.
ii. Revenues are above budget and a bonus based on this increase should be considered.
iii. Costs are 17.5% above budget and the department manager's position should be critically evaluated by senior management
iv. The departmental manager is performing to expectations because budgeted income equals actual income.