Question 28 (5 points) The following static and flexible budget report was prepared for the sales manager of ACME Corporation for the first quarter of 2022: Static Budget (20,000 units) Sales Budget Actual Variance $ 500,000 $ 475,000 $ 25,000 U Variable costs: Commissions (15% of sales) 75,000 75,000 Advertising (20% of sales) 100,000 100,000 Travel (10% of sales) 50,000 47,500 2,500 225,000 222,500 2,500 F Fixed costs: Sales salaries Administrative salaries Total costs 120,000 120,000 75,000 75,000 195,000 195,000 $ 420,000 $ 417,500 $ 2,500 Flexible Budget (Actual sales 19,000 units) Budget Actual Variance Sales $ 475,000 $ 475,000 $ Variable costs: Commissions (15% of sales) 71,250 75,000 3,750 Advertising (20% of sales) 95,000 100,000 5,000 Travel (10% of sales) 47,500 47,500 213,750 222,500 8,750 U Fixed costs: Sales salaries Administrative salaries. $120,000 120,000 75,000 195,000 75,000 195,000 Total costs $ 408,750 $ 417,500 $ 8,750 U Required: Assuming the sales manager has control over sales and selling costs, a) Comment on the manager's performance. (3 marks) b) Explain why flexible budgets are useful. (2 mark)