Outrageous Bubbles, Inc. produces multicolored bubble solution used for weddings and other events. The company sold 70,000 bubble kits during January, and its actual operating income was as follows:

Outrageous Bubbles, Inc. produces multicolored bubble solution used for weddings and other events. The company sold 70,000 bubble kits during January, and its actual operating income was as follows EEBClick the icon to view the actual income statement.) The company's flexible budget income statement for January follows: ER(Click the icon to view the flexible budget income statement) Read the requirements Requirement 1. Prepare the income statement performance report Note. The master budget was based on expected sales volume of 65,000 bubble kits. (For accounts with a 0 balance, make sure to enter "O" in the appropriate column. Label each variance as favorable (F) or unfavorable (U). A variance fzero is considered favorable.) Outrageous Bubbles, Inc. Income Statement Performance Report For the month ended January 31 Flexible Budget Actual Flexible Volume Master Variance Budget Variance Budget Output units Outrageous Bubbles, Inc. produces multicolored bubble solution used for weddings and other events. The company sold 70,000 bubble ER(Click the icon to view the actual income statement.) The company's flexible budget income statement for January follows: Outrageous Bubbles, Inc. (Click the icon to view the flexible budget income statement) Income Statement Read the reguirements Cost or gooas sOIa Month Ended January 31 Sales commissions expense 215,500 Sales revenue Utility expense Variable expenses: Fixed expenses Cost of goods sold 84,300 Salary expense Sales commissions 20,000 Depreciation expense 10,500 Utility expense Rent expense Fixed expenses: Utility expense Salary expense 35.100 Total expenses Depreciation expense 18,000 Operating income Rent expense 8,750 6.000 U ansn ageous Bubbles, inC Flexible Budget Income Statement Month Ended January 31 Flexible Budget per Output Unit Output Units (Kits) 70,000 75,000 65,000 $ 191,750 $ 206,500 $ 221,250 Sales revenue 2.95 Jariable expenses: 90,000 Cost of goods sold 1.20 78,000 84,000 18.750 Sales commissions 0.25 16,250 17.500 $ 191,750 $ 206,500 $ 221,250 Sales revenue 2.95 Variable expenses Cost of goods sold 1.20 78,000 84,000 90,000 Sales commissions 16,250 0.25 17,500 18,750 11,250 Utility expense 0.15 9,750 10,500 Fixed expenses 33,000 33,000 36,300 Salary expense Depreciation expense 18,000 18,000 20,700 Rent expense 9,000 9,000 13,000 6,000 6,000 6,000 Utility expense $ 170,000 $ 178,000 S 196,000 Total expenses 21,750 $ 28,500 $ 25,250 Operating income HA