E10.2 (LO 1, 2), AP Managers at Lincoln, Inc. were cautiously optimistic about receiving their bonuses at year-cnd. Periodic communications from the top noted that the sales team had been exceeding targets throughout the year, which led to steady production activity to keep pace. Managers knew that a company profit margin of 10% meant bonuses for everyone. The production crew had been managing costs well but wasn't sure where final costs would land with the sales volume higher than planned. The following information outlines actual and budgeted results for the year. Required a. Prepare Lincoln's flexible budget and actual income statement for the year: b. Determine the flexible budget variances and sales price variance, noting the amount and sign for each. c. What does the variance analysis suggest about the company's performance this year? What does it suggest specifically about the production department's performance? d. Did the company hit its target profit margin? Provide at least two ways in which this year's results might inform budgeting and objective-setting for the next year