Please reply in spreadsheet format Requirements 1.

Need a income statement performance report for October. 2. What accounts for most of the difference between actual operating income and master budget operating income? 3. What is Popping Bubbles' master budget variance for operating income? Explain why the income statement performance report provides Popping Bubbles' managers with more useful information than the simple master budget variance. What insights can Popping Bubbles' managers draw from this performance report? Keep in mind for the previous data see first table and this was the information provided with that previous table; see here: Popping Bubbles produces multicolored bubble solution used for weddings and other events. Popping Bubbles' plant capacity is 72,500 kits. If actual volume exceeds 72,500 kits, the company must expand the plant. In that case, salaries will increase by 10%, depreciation by 15%, and rent by $7,000. Fixed utilities will be unchanged by any volume increase. The company's master budget income statement for October follows. It is based on expected sales volume of 65,000 bubble kits.

POPPING BUBBLES, INC. Master Budget Income Statement Month Ended October 31 Sales revenue.. $188, 500 Variable expenses: Cast of goods sold 78.000 Sales commissions.. 13,000 Utility expense . 13.000 Fixed expenses: Salary expense...... 33,000 Depreciation expense ....--. 18.000 Rent expense. 11.000 Utility expense ...... 5.000 Total expenses ........messersores $171.000 Operating income............. $ 17,500 Requirements 1. Prepare flexible budget income statements for the company, showing output levels of 65,000, 70,000, and 75,000 kits. 2. Graph the behavior of the company's total costs. Use total costs on the y-axis and vol- ume (in thousands of bubble kits) on the x-axis. 3. Why might Popping Bubbles' managers want to see the graph you prepared in Re- quirement 2 as well as the columnar format analysis in Requirement 1? What is the disadvantage of the graphic approach? P10-50B Prepare and interpret a performance report (Learning Objective 2) Refer to the Popping Bubbles' data in P10-49B. The company sold 70,000 bubble kits during March and its actual operating income was as follows: POPPING BUBBLES, INC. Master Budget Income Statement Month Ended October 31 Sales revenue... $211,000 Variable expenses: Cust of goods sold . $ 84,500 Sales commissions. 15,500 Uhality expense. 14,000 Fixed expenses? Salary expense. 35,100 Depreciation expense .. 18 000 Rout expense 10,550 Utling expense.. 5.000 Total expenses $182.650 Operating income... $ 28,350