Movies Galore distributes DVDs to movie retailers, including online retailers. Movies Galore's. top management meets monthly to evaluate the company's performance. Controller Allen Walsh prepared the following performance report for the meeting: Movies Galore Static Budget Performance Report For the Month Ended July 1, 20X8 Actual Results $ 1,640,000 Static Budget $ 1,960,000 Variance (Actual - Static) $ 320,000 U 775,000 77,000 43,000 895,000 745,000 980,000 107,800 53.900 1,141,700 818,300 Net Sales Revenue Variable Costs: Cost of Goods Sold Sales Commissions Shipping Cost Total Variable Costs Contribution Margin Fixed Costs: Salaries Depreciation Rent Advertising Total Fixed Costs Operating Income 205,000 30.800 10,900 246,700 73,300 F F F F 311,000 209,000 129,000 81,000 730,000 $ 15,000 300,500 214,000 108,250 68,500 691.250 S 127.050 10.500 5,000 20,750 12,500 38,750 $ 112,050 ICCCCC U F U U U U Walsh also revealed that the actual sale price of $20 per movie was equal to the budgeted sale price and that there were no changes in inventories for the month. Page 4 of 6 719 words English (United States) Focus 1289 Requirement Prepare a more informative performance report. Be sure to include a flexible budget for the actual number of DVDs bought and sold. MOVIES GALORE Flexible Budget Performance Report For the Month Ended July 31, 20X8 2 3 Budget Amounts Per Unit Actual Results Flexible Budget Variance Flexible Budget Sales Cost Volume Variance Static Budget Units (DVDs) Net Sales Revenue Variable Costs: Cost of Goods Sold Sales Commissions Shipping Cost Total Variable Costs Contribution Margin Fixed Costs: Salaries Depreciation Rent Advertising Total Fixed Costs Operating Income