CBH Associates is reeling from a decline in profits because of competition. For its most recent year end, its controller has prepared following variance analysis and concluded that the company has done very well controlling its costs: Actual Variance Budgeted Variable Costs: Professional labour $ 1,000,000 $ Travel 50,000 Supplies 100,000 940,000 $ 40,000.00 90,000.00 60,000 F $10,000 F $10,000 F Fixed Costs: Professional labour Facilities Csots Insurance 400,000 250,000 80,000 405,000 265,000 78,000 -$5,000 -$15,000 U $2,000 F Total Costs $ 1,880,000 $ 1,818,000 $ 62,000 For the year CBH Associates projected that it would generate $2,000,000 of revenues; it actually generated $1,800,000. The company has consulted with you for help in understanding what is happening. You decide to address the following items. 1 Comment on the usefulness of the report above in performing cost control evaluation. (3 marks) 2 Prepare an alternative performance report to enable more meaningful cost control evaluation (use flexible budgeting and identify volume and price variances). (7 marks)