PART B It is now July 31st The President provides you with the income statement prepared by the accounting department with the actual results below for the quarter ending June 30th 1. Prepare a Comprehensive Performance Report. (Hint: You will need to prepare a flexible budget to complete this). 2. Was the increase in net income mostly attributed to activity or cost control? Explain. Hawaiian Leis Limited Income Statement (218,000 units) For the Quarter Ending June 30 $ 2,180,000 $ 872,000 87,200 959,200 1,220,800 Sales Variable Expenses: Cost of Goods Sold Commissions Contribution Margin Fixed Expenses: Advertising Rent Wages and salaries Utilities Insurance Depreciation Operating Income Less: Interest Expense Net Income 540,000 54,000 330,000 21,000 9,000 42,000 996,000 224,800 5,387 $ 219,413 PART B It is now July 31st The President provides you with the income statement prepared by the accounting department with the actual results below for the quarter ending June 30th 1. Prepare a Comprehensive Performance Report. (Hint: You will need to prepare a flexible budget to complete this). 2. Was the increase in net income mostly attributed to activity or cost control? Explain. Hawaiian Leis Limited Income Statement (218,000 units) For the Quarter Ending June 30 $ 2,180,000 $ 872,000 87,200 959,200 1,220,800 Sales Variable Expenses: Cost of Goods Sold Commissions Contribution Margin Fixed Expenses: Advertising Rent Wages and salaries Utilities Insurance Depreciation Operating Income Less: Interest Expense Net Income 540,000 54,000 330,000 21,000 9,000 42,000 996,000 224,800 5,387 $ 219,413