Melton Enterprises manufactures tires for the Formula 1 motor racing circuit. For August 2017, it budgeted to manufacture and sell 3,200 tires at a variable cost of $72 per tire and total fixed costs of $55,500. The budgeted selling price was $107 per tire. Actual results in August 2017 were 2,900 tires manufactured and sold at a selling price of $110 per tire. The actual total variable costs were $232,000, and the actual total fixed costs were $52,000. Read the requirements C. Requirement 1. Prepare a performance report that uses a flexible budget and a static budget. Begin with the actual results, then complete the flexible budget columns and the static budget columns. Label each variance as favorable or unfavorable. (For variances with a 50 balance, make sure to enter "0" in the appropriate field. If the variance is zero, do not select a label.) Actual Static Flexible-Budget Variances Flexible Budget Sales-Volume Variances X Results Budget Requirements Units sold Revenues 1. Prepare a performance report that uses a flexible budget and a static budget. 2. Comment on the results in requirement 1. Variable costs Contribution margin Fixed costs Operating income 0 Print Done Requirement 2. Comment on the results in requirement 1. The total static-budget variance in operating income is $ There is a(n) total flexible-budget variance and a(n) sales-volume variance. The sales-volume variance arises solely because actual units manufactured and sold were than the budgeted 3,200 units. The flexible-budget variance in operating income is due primarily to the in unit variable costs