Romero Transportation Company's general manager reports quarterly to the company president on the firm's operating performance. The company uses a budget based on detailed expectations for the forthcoming quarter. The general manager has just received the condensed quarterly performance report shown below. Click the icon to view the quarterly performance report.) Although the general manager was upset about not obtaining enough revenue, she was happy that her cost performance was favorable; otherwise, her net income would be even worse. The president was not satisfied with the performance report and remarked, "I can see some merit in comparing actual performance with budgeted performance because we can see whether actual revenue coincided with our best guess for budget purposes. But I can't see how this performance report helps me evaluate cost-control performance." Read the requirements Requirement 1. Prepare a columnar flexible budget for Romero Transportation at revenue levels of $11,900,000, $12,000,000, and $12,100,000. Assume that the prices and mix of products sold are equal to the budgeted prices and mix. Begin with the flexible budget at revenues of $11,900,000, next, complete the flexible budget at revenues of $12,000,000 and, then, prepare the flexible budget at revenues of $12,100,000. (Enter all costs as positive numbers.) Romero Transportation Company -X Flexible Budgets for Various Levels of Sales Data Table Net revenue $ 11,900,000 Variable Costs Budget Actual Variance Fuel $ Net revenue 12,000,000 $ 11,500,000 $ Repairs and maintenance Supplies and miscellaneous Variable Costs Fuel Variable payroll 600,000 $ 591.000 $ 9,000 F Repairs and maintenance 240,000 247,000 7,000 U Total variable costs Supplies and miscellaneous 1,080,000 1,066,000 14,000 F Fixed Costs Variable payroll 6,480,000 6,410,000 Supervision $ 8,400,000 $ 8,314,000 $ Rent Total variable costs 500,000 u $ 70,000 F 86,000 F Depreciation Fixed Costs $ Other fixed costs Total fixed costs Total fixed and variable costs 5,000 F Operating income 3,000 u Supervision 170,000 $ 178,000 $ 8,000 U Rent 190,000 190,000 Depreciation 410,000 410,000 Other fixed costs 90,000 85,000 Total fixed costs 860,000 863,000 Total fixed and variable costs 9,260,000 $ 9,177,000 $ 83,000 F $ 2,740,000 $ 2.323,000 $ Operating income U = Unfavorable. F = Favorable *For purposes of this analysis, assume that all these costs are totally variable with respect to sales revenue. In practice, many are mixed and have to be subdivided into $ 417,000 u Enter any number in the edit fields, then click Check