1. According to the details provided in the query, There was only projected revenue for the year,and sales could be below the break-even point. As a result, actual revenue for the year likelyexceeded estimates, resulting in a profit of more than $200,000.2. Second possibility, in which the company has announced an actual profit of more than$200,000.The second argument is a reduction in manufacturing variable costs. Likely, the businessperformed effectively, resulting in a lower amount of variable costs recorded in practice.