Sheridan Entertainment Corporation prepared a master budget for the month of November that was based on sales of 156,700 board games. The budgeted income statement for the period is as follows.

Sales Revenue				$2,663,900
Variable expenses
Direct materials		$689,480
Direct labor		282,060
Variable overhead		407,420
Total variable expenses				1,378,960
Contribution margin				1,284,940
Fixed overhead		254,200
Fixed selling and administrative expenses		506,000
Total fixed expenses				760,200
Operating income				$524,740

During November, Sheridan produced and sold 181,000 board games. Actual results for the month are as follows.

Sales Revenue				$3,066,500
Variable expenses
Direct materials		$783,500
Direct labor		339,400
Variable overhead		480,900
Total variable expenses				1,603,800
Contribution margin				1,462,700
Fixed overhead		271,100
Fixed selling and administrative expenses		506,000
Total fixed expenses				777,100
Operating income				$685,600

(a) Prepare a flexible budget for November.

(b) Calculate Sheridans static budget variance for November.

(c) Based on the available information, prepare a performance report for management.