Bay City Company's fixed budget performance report for July follows. The $587,000 budgeted total expenses include $400,000 variable expenses and $187,000 fixed expenses. Actual expenses include $177,000 fixed expenses. Fixed Budget Variances Sales (in units) Sales (in dollars) Total expenses Income from operations 8,000 $640,000 587,000 $ 53,000 Actual Results 6,900 $614,100 553,000 $ 61,100 $25,900 U 34,000 F $ 8,100 U Prepare a flexible budget performance report that shows any variances between budgeted results and actual results. List fixed and variable expenses separately. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance. Do not round your intermediate calculations. Round your final answers to whole dollars.) X Answer is complete but not entirely correct. BAY CITY COMPANY Flexible Budget Performance Report Variances Fav./Unf. Sales $ For Month Ended July 31 Flexible Actual budget results 552,000 $ 614,100 345,000 376,000 207,000 238,100 $ Favorable Variable expenses 62,100 31,000 31,100 Unfavorable Contribution margin Favorable Fixed expenses 187,000 177,000 10,000 Favorable Income from operations $ 20,000 $ 51,100 X $ 31,100 X Favorable