2. Perfect Match is a dating service. Rather than using algorithms, the company uses a traditional matchmaker. The company had the following income statement for April 2021: Perfect Match Income Statement (Actual vs Budget) For the Month Ended April 30, 2021 Budget Actual Variance Number of matches 120 150 30 F Revenues E12,000 E14,500 E2,500 F Variable costs Matching E3,000 E3,600 E600 U Customer 2,400 1,500 900 F screening Payment 1.200 1.450 250 U processing Total variable costs 6,600 6,550 50 F Fixed costs Office expenses 2,000 1,800 200 F Rent expense 900 950 50 U Total fixed costs 2,900 2.750 150 F Total costs 9,500 9,300 200 F Net income $2,500 E5,200 $2,700 E Maria Anderson, the manager and matchmaker comments on the report: "What a great month. We were busier than we expected to be and we still managed to keep costs down - I just wish every month could be this good".Required: a) Comment on the major flaw in the report above. (4 marks) b) Prepare a revised report using a flexible budget. (18 marks) c) Comment on Frost's assertion that it was a "great month". (4 marks)d} Which variance(s) ought to be investigated further? (4 marks) (Total marks = 30 marks)