Question 6, E7-21 (book/static) Part 3 of 4 HW Score: 60.87%, 5.48 of 9 points Points: 0.48 of 1 Save Sweeney Enterprises manufactures tires for the Formula 1 motor racing circuit. For August 2017, it budgeted to manufacture and sell 3,600 tires at a variable cost of $71 per tire and total fixed costs of $55,000. The budgeted selling price was $114 per tire. Actual results in August 2017 were 3,500 tires manufactured and sold at a selling price of $116 per tire. The actual total variable costs were $280,000, and the actual total fixed costs were $51,000 Read the requirements CERE Requirement 1. Prepare a performance report that uses a flexible budget and a static budget Begin with the actual results, then complete the flexible budget columns and the static budget columns. Label each variance as favorable or unfavorable. (For variances with a 50 balance, make sure to enter "O" in the appropriate field. If the variance is zero, do not select a label.) Sales-Volume Actual Results 3,500 Flexible-Budget Variances - X Flexible Budget 3,500 Static Budget Variances Requirements Units sold 0 Revenues S 7,000 F $ 406.000 $ 280.000 399,000 248,500 31,500 U 1. Prepare a performance report that uses a flexible budget and a static budget. 2. Comment on the results in requirement 1 Variable costs Contribution margin 126,000 24,500 U 150,500 55,000 51.000 Fbxed costs 4,000 F $ 75,000 $ 20.500 U S 95.500 Operating income Print Done Help me solve this Etext pages Get more help Clear all Check answer Type here to search A pe * * C ? C 47F 1 7:10 PM 3/26/2022