prepare flexible budget and calculate all variances of L1 and L2

Units sold Revenues (sales) Variable costs Contribution margin Fixed costs Operating income Performance Report, Year Ended December 31, 2019 Flexible Actual Results Budget (1) (3) 40,000 $2,000,000 1,024,000 976,000 816,000 $ 160,000 Static Budget (5) 50,000 $2,500,000 1,200,000 1,300,000 1,000,000 $ 300,000 Level 2 Level 1