Comprehensiv laster Budgets, ariances, Performance Evaluation Sudsy Days sold 7000 Soap jugs in 2019, and its actual operating income was as follows: Sudsy Days Balance Sheet December 31, 2019 2a. Prepare a flexible budget performance report through operating income for 2019. Show product costs separately from selling and administrative costs. To simplify the calculations due to sets in beginning inventory having a different cost than those produced and sold in 2019. Sudsy Days Soap Company Flexible Budget Performance Report For the Year Ended December 31, 2019 Net Sales Revenue Cost of Goods Sold: Variable Fixed Gross Profit Selling & Admin Expenses: Variable Fixed Operating Income Other income and (Expenses): Interest Expense Income Before Income Taxes Income Tax Expense Net Income $ 630,000 $ 94,890 Budget Amounts per unit Flexible Sales Actual Results Budget Variance Flexible Budget Volume Variance Static Budget 36,540 131,430 498,570 Units 7000 7000 6500 Net Sales Revenue $ 90 $ 630,000 $ $ 630,000 $ 45,000 F $ 585,000 Variable Costs: 12,600 61,400 22,000 $ 402,145 74,000 424,570 (425) 424,145 Product Costs S&A Costs Contribution Margin Fixed Costs: Product Costs S&A Costs Operating Income 94,890 950 U 93,940 9,700 U 84,240 12,600 12,600 900 U 11,700 36,540 1,800 61,400 424,570 850 38,340 61,400 $ 423,720 $34,400 38,340 61,400 $389,320 2a. Prepare a flexible budget performance report through operating income for 2019. Show product costs separately from selling and administrative costs. To simplify the calculations due to sets in beginning inventory having a different cost than those produced and sold in 2019, assume the following product costs: Variable Fixed Total Static Budget Flexible Budget 84,240 93,940 38,340 38,340 122,580 132,280 Flexible Budget Variance 850 Sales Vol. Variance $ 34,400 Static Budget Variance 35,250 F 2b. What was the effect on Sudsy's operating income of selling 500 jugs more than the static budget level of sales? 2b. 2c. What was the effect on Sudsy's operating income of selling 500 jugs more than the static budget level of sales? Explain why the flexible budget performance report provides more useful information to Sudsy's managers than the static budget performance report. What insights can Sudsy's managers draw from this performance report? *Note that you will need to refer to information from Req1 to complete this problem. 2c. Explain why the flexible budget performance report provides more useful information to Sudsy's managers than the static budget performance report. What insights can Sudsy's managers draw from this performance report?