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Brabham Enterprises manufactures tires for the Formula I motor racing circuit. For August 2020, it budgeted to manufacture and sell 3,000 tires at a variable cost of $73 per tire and total fixed costs of $57,000. The budgeted selling price was $111 per tire. Actual results in August 2020 were 2,700 tires manufactured and sold at a selling price of $113 per tire. The actual total variable costs were $218,700, and the actual total fixed costs were $53,500. Read the requirements. Requirement 1. Prepare a performance report with 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 $0 balance, make sure to enter "O" in the appropriate field. If the variance is zero, do not select a label.) Actual Flexible-Budget Flexible Results Variances Budget 2,700 Requirements 2,700 0 Units sold Revenues 5400 299700 305,100 218,700 Variable costs 7000 211700 1. Prepare a performance report with a flexible budget and a static budget. 2. Comment on the results in requirement 1. Contribution margin 86,400 Fixed costs 53,500 $ 32,900 Operating income Print Done