Question 1 (25 marks) After graduating from Yorkville University, you begin working as a senior manager for a major office cleaning company. Your boss has hired you at a salary of $127,000 per year because of your honesty and the ethical behaviour you demonstrated while you were studying at Yorkville. Your boss knows that you have strong skills in Managerial Accounting as you attended every class and never plagiarized or cheated on any of the Exams or Learning Activities. Below is your company's static budget and actual results for the month of August. Your company has one experienced employee and two less experienced workers. It normally takes an employee two hours to clean an office. The company pays $35 per office to the experienced employee and $25 per office to the other less experienced employees. Wages are increased at the rate of inflation and are only awarded in December. Budget Actual Office Cleaned 240 260 Revenue 50,400 65,000 Variable Costs Costs of Supplies 1,230 1,330 Labour 6,900 7,500 Total Variable Costs 8.130 8,830 Contribution Margin 42,270 56,170 Fixed Costs 5,000 5,000 Operating Income 37,270 51,170 Your boss has asked you to analyse the results and answer the following Five (5) questions. 1. Your boss is looking to improve profitability. In a brief paragraph (200 words) what areas of the business would you suggest could be improved upon? 2. How many offices, on average, did Office Cleaning Inc. budget for each employee? How many offices did each employee clean? 3. Prepare a Flexible Budget for August 2020 4. Compute the sales price variance and labour efficiency variance for both the experienced and less experienced employee