Connolly Enterprises manufactures tires for the Formula 1 motor racing circuit. For August 2017, it budgeted to manufacture and sell 3,400 tires at a variable cost of $78 per tire and total fixed costs of $56,500. The budgeted selling price was $107 per tire. Actual results in August 2017 were 3,100 tires manufactured and sold at a selling price of $110 per tire. The actual total variable costs were $266,600, and the actual total fixed costs were $51,500 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 $0 balance, make sure to enter "O" in the appropriate field. If the variance is zero, do not select a label.) Actual Flexible-Budget Flexible Sales-Volume Static Results Variances Budget Variances Budget Units sold Revenues Variable costs Contribution margin Fixed costs Operating income 3,100 341,000 266,600 74,400 51,500 22,900