Check Mate Printers, Inc., produces luxury checkbooks with three checks and stubs per page. Each checkbook is designed for an individual customer and is ordered through the customer's bank. The company's operating budget for September 2017 included these data: Click the icon to view the operating budget and actual results.) The executive vice president of the company observed that the operating income for September was much lower than anticipated, despite a higher-than-budgeted selling price and a lower-than-budgeted variable cost per unit. As the company's management accountant, you have been asked to provide explanations for the disappointing September results. Check Mate develops its flexible budget on the basis of budgeted per-output-unit revenue and per-output-unit variable costs without detailed analysis of budgeted inputs. Read the requirements. Requirement 1. Prepare a static-budget-based variance analysis of the September performance. Begin with the actual results, then compute the static budget and the static-budget variances. Label each variance as favorable or unfavorable. (Enter an operating loss with a minus sign or parentheses.) Static Actual Static-Budget Results Variances 13,800 3,200 U 289,800 $ 33,200 U Units sold Budget 17,000 323,000 Revenues $ $ 69,000 33,000 F 102,000 Variable costs Contribution margin 220,800 200U 221,000 135,000 139,500 Fixed costs 4,500 U $ 81,300 $ 4,700 86,000 Operating income (loss) The budgeted amounts for September 2017 were: Number of checkbooks 17,000 Selling price per book 19 Variable cost per book $ 6 Fixed costs for the month $ 135,000 The actual results for September 2017 were as follows: $ $ 13,800 $ 21 Number of checkbooks produced and sold Average selling price per book Variable cost per book Fixed costs for the month $ 5 $ 139,500 1. Prepare a static-budget-based variance analysis of the September performance. 2. Prepare a flexible-budget-based variance analysis of the September performance. 3. Why might Check Mate find the flexible-budget-based variance analysis more informative than the static-budget-based variance analysis? Explain your