Requirement 1. Prepare the income statement performance report. Note: The master budget was based on expected sales volume of 55,000 bubble kits. (For accounts with a 0 balance, make su each variance as favorable (F) or unfavorable (U). A variance of zero is considered favorable.) Everlasting Bubbles, Inc. Income Statement Performance Report For the month ended December 31 Output units Sales revenue Variable expenses Cost of goods sold Sales commissions expense Utility expense Fixed expenses: Salary expense Depreciation expense Rent expense Utility expense Total expenses Operating income. Actual Flexible Budget Variance Flexible Budget Volume Master Variance Budget