Flex Budget: 1. As sales manager, Joe Batista was given the following static budget report for selling expenses in the Clothing Department of Soria Company for the month of October. 2. The static budget below consists of the following data: Selling Price and Expenses per Units Unit Sales in units: Budgeted Actual 25,000 $22.50 $562,500 $605,000 Variable expenses: Sales Commissions 25,000 $3.00 per unit $ 75,000 $ 78,000 Travel expenses in miles 200,000 $1.00 per mile $200,000 $210.000 Total variable expenses: $275,000 $288,000 Fixed Expenses: Rent Sales Salaries Depreciation Sales Staff Autos 36,000 $ 36,500 48,000 $ 48,600 32.000 $ 32.000 $116,000 $117,100 Total Fixed Costs: Total Expenses $391.000 5405.100 $171.500 $199,900 Net Income As a result of this budget report, Joe was called into the president's office and congratulated on his fine sales performance. He was reprimanded, however, for allowing his costs to get out of control. Joe knew something was wrong with the performance report that he had been given. However, he was not sure what to do, and comes to you for advice. Prepare a budget report based on flexible budget data to help Joe. Flex Budget Units Fixed Costs Sales in units: 26,300 units Variable expenses: Sales Commissions 26,300 units Travel expenses in miles 205.000 miles Fixed Expenses: Rent $ 36,000 Sales Salaries $ 48,000 Depreciation-Sales Staff $ 32,000 Autos Total Fixed Costs: $ 116,000