Solve both part 1 and 2 of this question

Q.No.4. (Marks 8) I. Suzuki Motors is an international company that owns and operates a large automatic carwash facility in one of its branches near Gujrat. The following table provides data concerning the company's costs: Fixed Cost per Month Cost per Car Washed Cleaning supplies $0.80 Electricity $1,200 $0.15 Maintenance $0.20 Wages and salaries $5,000 $0.30 Depreciation $6,000 Rent $8,000 Administrative expenses $4,000 $0.10 For example, electricity costs are $1,200 per month plus $0.15 per car washed. The company expects to wash 9,000 cars in August and to collect an average of $4.90 per car washed. Required: Prepare the company's planning budget for August. II. Air blue offers international flights of Spain, America, Australia and Switzerland. Data concerning the company's operations in July appear below: Air blue Operating Data For the Month Ended July 31 Actual Flexible Planning Results Budget Budget Flights ( q ) 48 48 50 Revenue ($320.00 q ) $13,650 $15,360 $16,000 Expenses: Wages and salaries ($4,000 1 $82.00 q ) 8.430 7,936 8,100 Fuel ($23.00 q ) 1,260 1,104 1,150 Airport fees ($650 1 $38.00 q ) 2,350 2,474 2,550 Aircraft depreciation ($7.00 q ) 336 336 350 Office expenses ($190 1 $2.00 q ) 460 286 290 Total expense 12,836 12,136 12,440 Net operating income $ 814 $ 3,224 $ 3,560 The company measures its activity in terms of flights. Customers can buy individual tickets for overflights or hire an entire plane for an overflight at a discount. Required: 1. Prepare a flexible budget performance report for July. 2. Which of the variances should be of concern to management? Explain