ective 2) Refer to the Popping Bubbles' data in P10-55B. The company sold 70,000 bubble kits during March and its actual operating income was as follows: POPPING BUBBLES, INC. Master Budget Income Statement Month Ended October 31 Sales revenue.. Variable expenses: Cost of goods sold ....... Sales commissions ..... Utility expense Fixed expenses: Salary expense......... Depreciation expense Rent expense....... Utility expense Total expenses.... Operating income.... ***** $211,000 $ 84,500 15,500 14,000 35,100 18,000 10,550 5,000 $182,650 $ 28,350 Requirements 1. Prepare an income statement performance report for October. 2. What accounts for most of the difference between actual operating income and mas- ter budget operating income? 3. What is Popping Bubbles' master budget variance for operating income? Explain why the income statement performance report provides Popping Bubbles' managers with more useful information than the simple master budget variance. What insights can Popping Bubbles' managers draw from this performance report?

Refer to the Popping Bubbles' data in P10-55B. The company sold 70,000 bubble 2 during March and its actual operating income was as follows: Requirements 1. Prepare an income statement performance report for October. 2. What accounts for most of the difference between actual operating income and mas ter budget operating income? 3. What is Popping Bubbles' master budget variance for operating income? Explain why the income statement performance report provides Popping Bubbles' managers with more useful information than the simple master budget variance. What insights can Popping Bubbles' managers draw from this performance report