Flexible budget. Sweeney Enterprises manufactures tires for the Formula I motor racing circuit. For August 2017, it budgeted to manufacture and sell 3,600 tires at a $71 per tire and total fixed costs of $55,000. The budgeted selling price was $114 per tire. Actual results in August 2017 were 3,500 tires manufactured and sold at a selling price of $116 per tire. The actual total variable costs were 5280,000, and the actual total fixed costs were $51,000.

Requirements

1. Prepare a performance report that uses a flexible budget

2. Comment on the results in requirement 1.