All 3 requirements completed please

Everlasting Bubbles, Inc., produces multicolored bubble solution used for weddings and other events. (Click the icon to view the master budget income statement.) Everlasting Bubbles' plant capacity is 62,500 kits. If actual volume exceeds 62,500 kits, the company must expand the plant. In that case, salaries will increase by 10%, depreciation by 15%, and rent by $4,000. Fixed utilities will be unchanged by any volume increase. Requirements 1. Prepare flexible budget income statements for the company, showing output levels of 55,000, 60,000, and 65,000 kits. 2. Graph the behavior of the company's total costs. Use total costs on the y-axis and volume (in thousands of bubble kits) on the x-axis. 3. Why might Everlasting Bubbles' managers want to see the graph you prepared in Requirement 2 as well as the columnar format analysis in Requirement 1? What is the disadvantage of the graphic approach? The company's master budget income statement for March follows. It is based on expected sales volume of 55,000 bubble kits. Everlasting Bubbles, Inc. Master Budget Income Statement Month Ended March 31 $ Sales revenue..... Variable expenses: Cost of goods sold Sales commissions Utility expense Fixed expenses: Salary expense Depreciation expense EA 159,500 68,750 11,000 8,250 30,000 20.000 Salary expense Depreciation expense Rent expense Utility expense Total expenses .... Operating income 30,000 20,000 11,000 6,000 $ 155,000 $ 4,500 Requirement 1. Prepare flexible budget income statements for the company, showing output levels of 55,000, 60,000, and 65,000 kits. (Enter the per unit information to two decimal places.) Everlasting Bubbles, Inc. Flexible Budget Income Statement Month Ended March 31 Flexible Budget per Output Unit Output Units (Kits) 60,000 Sales revenue Variable expenses: Cost of goods sold Sales commissions 55,000 65,000 Utility expense Fixed expenses: Salary expense Depreciation expense Rent expense Utility expense Total expenses Operating income