The company created a flexible budgeted income statement to compare to actual results for the year. From the data provided, you will calculate variances for each income statement item, analyze why certain variances have occurred, and determine what the company can do going forward to mitigate each variance. Project Data: S Sales Revenue Cost of Goods Sold Gross Profit Flexible Budget 150,000 $ 90.000 60.000 S Actual Results 135,000 81.000 54.000 S 3. Determine if a variance occurred for each of the following and provide a brief explanation for each variance: Expenses: Salaries Sales Commissions Rent Insurance Supplies Other Operating Total Expenses a. Sales Revenue 35.000 3,000 12,000 4.000 400 1,100 55,500 35,000 2,700 12,000 4.000 800 54,800 b. Cost of Goods Sold S S Net Income S 4,500 S (800) c. Total Expenses d. Net Income The income statement above is for one product that the company sells to its customers. A customer will receive a 10% discount when they purchase 10 or more items in one transaction. Furthermore, two customers switched suppliers during the year and the company did not sell to any new customers. Cost of goods sold includes direct materials, direct labor, and manufacturing overhead, and is expensed when the product is sold. All expenses are period costs that are expensed in the period incurred. Sales commissions are 2% of sales revenue