Happy Bubbles, Inc., produces multicolored bubble solution used for weddings and other events EEB (Click the icon to view the master budget income statement) Happy Bubbles' plant capacity s 62.500 kits actual volume exceeds 62.500 kits the company must expand he plan depreciation by 15%, and rent by $4,000. Fixed utilities will be unchanged by any volume increase Requirements 1. Prepare flexible budget income statements for the company, showing output levels of 55,000, 60,000, and 65,000 kits 2 Graph he behavior o he company's otal costs. Use otal costs on he y-axis and volume n housands o bubble kits on he x-axis 3. Why might Happy Bubbles' managers want to see the graph you prepared in Requirement 2 as well as the columnar format analysis in Requirement 1? What is n that case. Salaries w l increase by 0% the disadvantage of the graphic approach? Requirement 1. Prepare flexible budget income statements for the company, showing output levels of 55,000, 60,000, and 65,000 kits. (Enter the per unit information to two decimal places.) Data Table Happy Bubbles, Inc. Flexible Budget Income Statement Month Ended January 31 The company's master budget income statement for January follows. It is based on expected sales volume of 55,000 bubble kits Flexible Budget per Output Unit Happy Bubbles, Inc. Master Budget Income Statement Month Ended January 31 Output Units (Kits) 60,000 55,000 65,000 $ 159,500 Sales revenue Sales revenue Variable expenses Variable expenses Cost of goods sold Sales commissions Utility expense Cost of goods sold Sales commissions Utility expense $ 68,750 11,000 8,250 Fixed expenses Fixed expenses Salary expense Depreciation expense Rent expense Utility expense Salary expense Depreciation expense Rent expense Utility expense 30,000 20,000 11,000 6.000 $ 155,000 4.500 Total expenses Total expenses Operating income perating income (After you hit continue the screen may take you below the beginning of the next step. If so, scroll back up to the top of the step.) PrintDone Click the graph, choose a tool in the palette and follow the instructions to create your graph