Comprehensive: Master Budgets, Variances, 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 $ 630,000 $ 94,890 36,540 131,430 498,570 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 12,600 61,400 74,000 424,570 (425) 424,145 22,000 402,145 $ 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 84,240 38,340 122,580 e Flexible Budget 93,940 38,340 132,280 3 1 52b. What was the effect on Sudsy's operating income of selling O jugs more than the static budget level 5 of sales? I 2c. Explain why the flexible budget performance report provides more useful information to Sudsy's B managers than the static budget performance report. What insights can Sudsy's managers draw from this performance report? 9 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 Budget Amounts Actual Results Flexible Budget Variance Flexible Budget Sales Volume Variance Static Budget per unit Units Net Sales Revenue Variable Costs: Product Costs S&A Costs Contribution Margin Fixed Costs: Product Costs S&A Costs Operating Income Flexible Budget Variance Sales Vol. Variance Static Budget Variance 2b. What was the effect on Sudsy's operating income of selling O jugs more than the static budget level of sales? 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