Smith Enterprises manufactures tires for the Formula 1 motor racing circuit. For August 2017, it budgeted to manufacture and sell 2,800 tires at a variable cost of $77 per tire and total fixed costs of $53,000. The budgeted selling price was $113 per tire. Actual results in August 2017 were 2,500 tires manufactured and sold at a selling price of $115 per tire. The actual total variable costs were $212,500, and the actual total fixed costs were $50,500. Read the requirements. Results Variances Variances Budget Budget 2500 2500 Units sold Revenues Variable costs Contribution margin Fixed costs Operating income Requirement 2. Comment on the results in requirement 1. The total static-budget variance in operating income is $ There is an) total flexible-budget variance and a(n) sales-volume variance. The sales-volume variance arises solely because actual units manufactured and sold were than the budgeted 2,800 units. The flexible-budget variance in operating income is due primarily to the in unit variable costs