C3. Cool Air Ltd. manufactures and sells home air conditioning systems. The budgeted sale price is $450 per system. The company's budgeted variable cost of goods sold are $270 per system and monthly budgeted fixed costs is $120,000. The static budget for the month of August was based on 700 units sold. In August Cool Air Ltd. sold 730 units for $428 per system, and incurred variable cost of goods sold of $262 per system. Actual fixed costs were $116,450. (10 Marks) a. Complete the income statement performance report for August. (8 Marks) b. In proper sentence form explain two possible reasons for the sales variances. (2 marks)