Evertasting Bubbles, Inc. produces multiodiored bubble solution used for weddings and other events. The company sold 70,000 bubble kits during Decenbec, and its actial operating income was as folows: (Click the icon to view the actual income staiement) The company's flexble budget income statoment for December followa: (Cick the icon to view the floxible budgot income statement.) Read the requirements. Total expenses Operating income Data table Data table 1. Prepare an income statement performance report for December. 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 for operating income? 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? Everlasting Bubbles, Inc. Income Statement Performance Report For the month ended December 31 Variable expensne: Cent of goods sold Soves commissions eveente Ualty wewerse Viked expenties: Saiary rescense. Depreciation experse Rotit nxpense Uhing esperes Totw expenses Total expenses Operating income Data table Data table