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. Variances Sales (in units) Sales (in dollars) Total expenses Income from operations Fixed Budget 8,000 $640,000 587,000 $ 53,000 Actual Results 6,900 $607,200 547,000 $ 60,200 $32,800 U 40,000 F $ 7,200 u Prepare a flexible budget performance report that shows any variances between budgeted results and actual results. List fixed and variable expenses separately. BAY CITY COMPANY Flexible Budget Performance Report Variances Fav./Unf. Favorable Sales Variable expenses Contribution margin Fixed expenses Income from operations For Month Ended July 31 Flexible budget Actual results $ 552,000 $ 607,200 345,000 207,000 187,000 $ 20,000 Unfavorable Favorable Favorable Favorable