Taonga Whero Ltd hired a new marketing manager early last year. After an informal consumer survey, the marketing manager decided to lower the firm's selling price by 10 per cent and increase television advertising. The operating results at year end were disappointing. The marketing manager prepared the following analysis. He assumed that direct materials and direct labour were variable costs and that advertising was a fixed cost. Actual Variance Units Budget 150,000 $937,500 $225,000 170,000 $956,250 $ 18,750 F $24.900 U Sales Direct materials. Direct labour Variable overhead $249,900 $289,000 $262.500 $26,500 U $112.500 $127,500 $15,000 U Fixed overhead $75,000 $200 U $75,200 $40,000 Advertising $20,000 $20,000 U. $67,850 U Operating income $242,500 $174,650 "As you can see", the marketing manager reported, "the major problem is due to inefficiencies in production. My plan would have worked if production had managed its costs better." Required: You can type your answers and working straight into the box below.or. you can type your answers into a document, and cut and paste into the box below, or you can input your data and do the working as formulas in a spreadsheet and upload the spreadsheet into the file uploading box at the bottom of the screen (scroll down). or. you may handwrite the answers to part a, take a photo and upload into the File uploading box at the bottom of this screen (scroll down). (a) Prepare a flexible budget report. (21 marks) (b) What is the real source of the disappointing results? Explain.. [You must type your answer - do not handwrite)