Garbera Enterprises manufactures tires for the Formula I motor racing circuit. For August 2018, it budgeted to manufacture and sell 3,000 tires at a variable cost of $72 per tire and total fixed costs of $52,500. The budgeted selling price was $113 per tire. Actual results in August 2018 were 2,900 tires manufactured and sold at a selling price of $116 per tire. The actual total variable costs were $232,000, and the actual total fixed costs were $48,000. Required 1. Prepare a performance report that uses a flexible budget and a static budget. 2. Comment on the results in requirement 1. Requirement 1. Prepare a performance report that uses a flexible budget and a static budget. Begin with the actual results, and then complete the flexible budget columns and the static budget columns. Label each variance as favourable or unfavourable. (For variances with a $0 balance, make sure to enter "O" in the appropriate field. If the variance is zero, do not select a label. Use parentheses or a minus sign when entering an operating loss.) Actual Results Units sold Revenues Variable costs Contribution margin Fixed costs Operating income