It's Just Lunch is a match-making service for professionals. The company had the following income statement for June It's Just Lunch, Inc. Income Statement (Actual versus Budget) For the Month Ended June 30 # of couples matched Revenues Budget 120 Actual 150 $14,500 Variance 30 F $2,500 F $12,000 Variable costs $3,000 $3,600 $600 U Hand Selected Matching 2,400 1200 6,600 1,500 1450 6,550 Client screening Billing Total variable costs Fixed costs 900 F 250 U 50 F 2,000 900 2,900 9,500 1,800 950 2,750 9,300 200 F 50 U 150 F 200 F Office expenses Insurance expense Total fixed costs Total costs Net income 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: a.) What is the major flaw in the report above b.) Prepare a revised report using a flexible budget. c.) Comment on Zimmerers assertion that it was an "amazing month d.) Which variance(s) ought to be investigated further