As sales manager, Jemmima was given the following staFc budget report for selling expenses in the Winter Sports Department of Oopodo Outdoor Company for the month of November. Oopodo Outdoor Company Winter Sports Department Budget Report For the Month Ended November 30, 2017 Difference Favorable F Budget Actual Unfavorable U Sales in units 4,000 4,500 500 F Variable expenses Sales commissions $120,000 $128,000 $ 8,000 U AdverFsing expense 38,000 41,250 3,250 U Travel expense 185,000 202,125 17,125 U DemonstraFon models given out 100,000 90,750 9,250 F Total variable 443,000 462,125 19,125 U Fixed expenses Rent 7,500 7,500 -0- Sales salaries 60,000 60,000 -0- Office salaries 40,000 40,000 -0- DepreciaFon vans (sales staff) 2,500 3,000* 500 U Total fixed 110,000 110,500 500 U Total expenses $553,000 $572,625 $ 19,625 U *The increase in depreciaFon was due to a new vehicle that had to be purchased as a result of an accident driving on snowy roads on the way to visit a customer. As a result of this budget report, Jemmima was called into the presidents office and congratulated on his fine sales performance. He was reprimanded, however, for allowing his costs to get out of control. Jemmima knew something was wrong with the performance report that he had been given. However, he was not sure what to do, and comes to you for advice. Instruc(ons (a) Prepare a budget report based on flexible budget data to help Jemmima. (b) Should Jemmima have been reprimanded? Explain. (c) Ager Jemmima because familiar with the flexible budget report, he began to analyze the numbers. Jemmima feels that sales can be increased if Oopodo Outdoor Company would increase sales commissions to $31 per unit. This would allow them to reduce adverFsing expense to $8.00 per unit. Jemmima thinks that these changes will moFvate the sales staff to sell at least 5,500 units. He is allowed to try his plan in December and had the following results. Prepare a budget report based on flexible budget data. The new depreciaFon amount has been included in the budgeted fixed costs. Do you think the new plan is valid? Explain. Oopodo Outdoor Company Winter Sports Department Results For the Month Ended December 31, 2017 Sales in units 5,500 Variable expenses Sales commissions $164,000 AdverFsing expense 42,000 Travel expense 247,000 DemonstraFon models given out 116,000 Total variable 569,000 Fixed expenses Rent 7,500 Sales salaries 60,000 Office salaries 40,000 DepreciaFon vans (sales staff) 3,000 Total fixed 110,500 Total expenses $679,500