Connolly Enterprises manufactures tires for the Formula I motor racing circuit. For August 2020 , it budgeted to manufacture and sell 2,800 ires at a vanable cost of 580 per tire and total foced costs of $52,500. The budgeted selling price was $115 por tire. Actual results in August 2020 were 2,700 tires manufactured and sold at a selling price of $119 per tire. The actual fotal variable conts were $234,900, and the actual total fored costs were $48,000. Read the ceauitements. Requirement 1. Prepare a performance report with a floxible budget and a statie budget Begin with the actual results, then complote the flexiblo budjet columins and the statio budget colurns. Label each variance as favorabio or untavorable. (For variancen with a So balance, make sute to enser " 20 " in the appropriate field: if the variance is zero, do not solect a linbel.) Requirements 1. Prepare a performance report with a flexible budget and a static budget. 2. Comment on the results in requirement 1 . \begin{tabular}{|c|c|c|c|c|c|} \hline & & \begin{tabular}{l} Actual \\ esults \end{tabular} & \begin{tabular}{l} Flexible-Bud \\ Variances \end{tabular} & & \begin{tabular}{l} Flexible \\ Budget \end{tabular} \\ \hline sold & & 2,700 & 0 & & 2700 \\ \hline evenues & $ & 321,300 & & F & 321300 \\ \hline Variable costs & & 234,900 & & U & 216000 \\ \hline Contribution margin & & 86,400 & & U & 105300 \\ \hline Fixed costs & & 48,000 & & F & 48000 \\ \hline Operating income & $ & 38,400 & & U & 57300 \\ \hline \end{tabular}