Its Just Lunch is a match-making service for professionals. The company had the following income statement for June:

Its Just Lunch, Inc.
Income Statement (Actual versus Budget)
For the Month Ended June 30
	Budget	Actual	Variance
# of couples matched	120	150	30 F
Revenues	$12,000	$14,500	$2,500 F
Variable costs
Hand Selected Matching	$3,000	$3,600	$600 U
Client screening	2,400	1,500	900 F
Billing	1,200	1,450	250 U
Total variable costs	6,600	6,550	50 F
Fixed costs
Office expenses	2,000	1,800	200 F
Insurance expense	900	950	50 U
Total fixed costs	2,900	2,750	150 F
Total costs	9,500	9,300	200 F
Net income	$2,500	$5,200	$2,700 F

Ann Zimmerer, the manager commented on the report: June was an amazing month. We had more business than we expected and we still managed to keep costs down it would be great if every month could be this good.

Required:

1. What is the major flaw in the report above.
2. Prepare a revised report using a flexible budget.
3. Comment on Zimmerers assertion that it was an amazing month.
4. Which variance(s) ought to be investigated further?