analysis. CUP, Inc produce and sell customized paper cups. The companys operating budget for April 2020 included these data:

Number of Package produced and sold

(100 Brown Paper Cups with White Lids) 450

Selling price per Package SR 140

Variable cost per Package SR 56

Fixed costs for the month SR 20,000

The actual results for April 2020 were as follows:

Number of Package produced and sold

(100 Brown Paper Cups with White Lids) 420

Selling price per Package SR 136

Variable cost per Package SR 58

Fixed costs for the month SR19,500

Required:

1.Prepare a static-budget-based variance analysis of the September performance.

2.Prepare a flexible-budget-based variance analysis of the September performance.

3.Why might CUP, Inc find the flexible-budget-based variance analysis more informative than the static-budget-based variance analysis? Explain your answer.