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Brabham Enterprises manufactures tires for the Formula 1 motor racing circuit. For August 2017, it budgeted to manufacture and sell 3,000 tires at a variable cost of $73 per tire and total fixed costs of $53,000. The budgeted selling price was $115 per tire. Actual results in August 2017 were 2,900 tires manufactured and sold at a selling price of $116 per tire. The actual total variable costs were $229,100, and the actual total fixed costs were $50,000 Read the requirements 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 $0 balance make sure to enter "O" in the appropriate field. If the variance is zero, do not select a label.) Actual Flexible-Budget Flexible Sales-Volume Static Results Variances Budget Variances Budget 3,000 345,000 219,000 Units sold Revenues Variable costs Contribution margin Fixed costs Operating income Requirement 2. Comment on the results in requirement 1 The total static-budget variance in operating income is S variance and a(n) manufactured and sold were primarily to the 336,400 8,600 229,100 10.100 U 3.000 53,000 There is a(n) total flexible-budget sales-volume variance. The sales-volume variance arises solely because actual units than the budgeted 3,000 units. The flexible-budget variance in operating income is due in unit variable costs