Project Summary: The company created a flexible budgeted income statement to compare to actual results for the year. From the data provided, you will calculate variances for each income statement item, analyze why certain variances have occurred, and determine what the company can do going forward to mitigate each variance. Proiect Data: - The income statement above is for one product that the company sells to its customers. A customer will receive a 10% discount when they purchase 10 or more items in one transaction. Furthermore, two customers switched suppliers during the year and the company did not sell to any new customers. - Cost of goods sold includes direct materials, direct labor, and manufacturing overhead, and is expensed when the product is sold. All expenses are period costs that are expensed in the period incurred. - Sales commissions are 2% of sales revenue. Project Requirements: 1. Calculate the variance between the flexible budget and actual results for each income statement item. 2. Determine whether each variance is favorable or unfavorable for the company. 3. Determine if a variance occurred for each of the following and provide a brief explanation for each variance: a. Sales Revenue b. Cost of Goods Sold c. Total Expenses d. Net Income 4. Provide a brief explanation on what the company can do going forward to mitigate each variance