At the start of the year Company has prepared the fixed budget, with the following information: Production and sales were based on 6,000 units. The sales revenue was 180,000$. Variable costs included: Direct materials of 78,000$, Direct labor of 24,000$. Maintenance costs of 18,000$. Semi-variable costs amounted to 67.000$ and consist of 19,000$ fixed costs and the rest of variable component. Fixed costs amounted to 12,000$. Budgeted loss was 19,000$. For the year actual results were as follows: Production and sales 7,000 units. Sales-218,000$. Direct materials-88,000$. Direct labor - 27,000$, Maintenance costs 18,000$, Semi-variable costs -74,400$. Fixed costs -15,000$. Required: 1. Prepare a Flexible budget for the Company: (10 points) 2. Compare actual results to the flexed budget: identify Variances for each line item and specify if it is Favorable or Adverse: (6 points) 3. Describe what is the difference between fixed and flexible budget? (2 points) 4. What is the principle of Just in time (IT) give examples (2 points)