Everlasting Bubbles, Inc. produces multicoloredbubble solution used for weddings and other events. The company sold 70.000 bubble kits during March, and its actual operating income was as follows Click the icon to view the actual income statement) The company's feble budget Income statement for March follows m Ckck the icon to view the flexible budget income statement) Read the recents Requirement 1. Prepare the income statement performance report Note The master budowa b ed on expected sales volume of 65 000 bubble Kits (For accounts with a make sure to enter in the appropriate column Label each variance as favorable for unfavorable Avalance of evo in considered favorable) balance Everlasting Bubbles, Inc. Income Statement Performance Report For the month ended March 11 Actual Flexible Budget Flexible Volume Choose from any list or enter any number in the input fits and then continue to the next question Master Everlasting Bubbles, Inc. Income Statement Month Ended March 31 212,000 Sales revenue. Variable expenses: Cost of goods sold Sales commissions Utility expense Fixed expenses: Salary expense Depreciation expense Rent expense 88,100 23,000 3,500 35,100 18,000 14,250 5.000 Utility expense Total expenses.... 186,950 25.050 Operating income. Everlasting Bubbles, Inc. Flexible Budget Income Statement Month Ended March 31 Flexible Budget per Output Unit Output Units (Kits) 65,000 70,000 75,000 188,500 $ 203,000 $ 217,500 Sales revenue $ 2.90 $ 1.25 0.30 0.05 81,250 19,500 3,250 87,500 21,000 3,500 Variable expenses: Cost of goods sold Sales commissions Utility expense Fixed expenses: Salary expense Depreciation expense Rent expense 93,750 22,500 3,750 33.000 18,000 15,000 5,000 175,000 $ 13,500 $ 33,000 36,300 18,000 20,700 15,000 19,000 5,000 5,000 183,000 $ 201,000 20,000 $ 16,500 Utility expense Total expenses $ $ Operating income lo i Requirements 1. Prepare an income statement performance report for March. Note: The master budget was based on expected sales volume of 65,000 bubble kits. 2. What accounts for most of the difference between actual operating income and master budget operating income? 3. What is Everlasting Bubbles' master budget variance? Explain why the income statement performance report provides Everlasting Bubbles' managers with more useful information than the simple master budget variance. What insights can Everlasting Bubbles' managers draw from this performance report? Print Done number in the input fields and then continue to the next question. Everlasting Bubbles, Inc. produces multicolored bubble solution used for weddings and other events. The company sold 70,000 bubble kits during March, and its actual operating income was as follows (Click the icon to view the actual income statement) The company's flexible budget Income statement for March follows: mm Click the icon to view the fexible budget income statement) Read the requirements balance, Requirement 1. Prepare the income statement performance report Note. The master budget was based on expected sales volume of 65,000 bubble kits (For accounts with a make sure to enter in the appropriate column Label each variance as favorable (F) or unfavorable (U). Avalance of zero is considered favorable) Everlasting Bubbles, Inc. Income Statement Performance Report For the month ended March 31 Actual Flexible Budget Flexible Volume Master Choose from any list or enter any number in the input fields and then continue to the next