Answer:
Walton Company 
Income Statement 
                                    Actual                Budgeted            Variances 
Sales                          510,400                 $ 519,000              8,600 U
Variable product costs    183400             188,000                 4,600 F         
Variable selling expense   48100              46,000                  2,100 U
Other variable expenses  5100                  3,300                  1,800 U
Contribution Margin      273,800              281,700              7,900 unfav
Fixed product costs   15460                       15,700                  240 F
Fixed selling expense   22920                   23,400                 480 F
Operating Income      235420                    242,600          7,180  unfav
Other fixed expenses   1460                       1,300                 160 U
Interest expense            710                          800                   90 F      
Net income                 233,250                  240,500           7,250 unfav
We calculate the actual amounts from the budgeted amount by adding the variances when they are unfavorable and subtracting them when they are favorable . But in case of sales this is reversed. The actual sales are calculated by   subtracting unfavorable variance from budgeted sales.
The fav amounts are subtracted from the unfav amounts to get the results .
 8,600 u + ( 4,600)F + 2,100 U +1,800= 7,900 unfav