The management of Jordan Modems, Inc. (JMI) is uncertain as to the volume of sales that will exist in Year 1. The president of the company asked the chief accountant to prepare flexible budget income statements assuming that sales activity amounts to 3,000 and 7,000 units. The static budget is shown in the following form. Required a. Complete the following worksheet to prepare the appropriate flexible budgets. b. Calculate and show the flexible budget variances for the static budget versus the flexible budget at 7000 units. c. Indicate whether each variance is favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e.. zero variance).) JORDAN MODEMS, INC. Flexible Budget Income Statements Cost per unit Static Flexible Budgets Volume Variance Budget Number of units 7,000 5,000 3.000 Sales revenue 150 $750.000 $ Variable manufacturing costs: Materials 45 225,000 150,000 Labor 35,000 7 Overhead Variable selling, general & administrative Contribution margin 45,000 295,000 Fixed costs 59,000 Manufacturing rent Depreciation on manufacturing equipment Selling, general & administrative expenses Depreciation on administrative equipment Net income (loss) 69,000 85,900 21,000 $ 60,100 S(57 900) $178,100