Joe Investments Ltd provides its clients with financial and tax advice. The company's main expense is for technical experts. These experts are paid solely on a commission basis,30% of revenue.

Last year's budget called for 2100 clients to provide the firm with revenue of $ 450,000. Joe budgeted a profit of $60 to be earned from the average client. This profit figure included a 50 per client charge for fixed costs. Budget expectations were exceeded with 2.100 clients being provided with advice earning the firm revenue of $450,000 and profit of $95.000. The favourable fixed overhead output level (production volume) variance in the period was exactly offset by an unfavorable fixed overhead spending variance. Write a Level 2 analysis forJoe that includes: (a) a flexible budget (6 points) (b) actual values (3 points) (c) flexible budget variances (5 points) (d) a master budget (3 points) (e) the sales volume variance (3 points)