Connolly Enterprises manufactures tires for the Formula 1 motor racing circuit. For August 2017, it budgeted to manufacture and sell 3,200 tires at a variable cost of $80 per tire and total fixed costs of $56,500. The budgeted selling price was $116 per tire. Actual results in August 2017 were 3,100 tires manufactured and sold at a selling price of $119 per tire. The actual total variable costs were $272,800, and the actual total fixed costs were $54,000. Read the requirements.. Requirement 1. Prepare a performance report that uses a flexible budget and a static budget. Begin with the actual results, then complete the flexible budget columns and the static budget columns. Label each variance as favorable or unfavorable. (For variances with a 50 balance, make sure to enter "0" in the appropriate field. If the variance is zero, do not select a label.) Actual Results Flexible-Budget Flexible Variances Budget Sales-Volume Variances Static Budget Units sold