Treanor Enterprises manufactures tires for the Formula 1 motor racing circuit For August 2017, it budgeted to manufacture and sell 2 800 tires at a variable cost of $78 per tire and total fixed costs of $56,500. The budgeted selling price was $113 per tire Actual results in August 2017 were 2.600 tires manufactured and sold at a selling price of S115 per tire. The actual total variable costs were $221,000, and the actual total fixed costs were $54,000. Read the requirements. Requirement 1. Prepare a performance report that uses a flexible budget and a static budget Begin with the actual results, then complete the flexible budget columns and the static budget columns Label each variance as favorable or unfavorable (For variances with a $0 balance, make sure to enter "O" in the appropriate field. If the variance is zero, do not select a label) Actual Flexible-Budget Flexible Sales-Volume Static Results Variances Budget Variances Budget Units sold Revenues Variable costs Contribution margin Fixed costs Operating income Requirement 2. Comment on the results in requirement 1 The total static-budget variance in operating income is S There is a(n) total flexible-budget variance and an) sales volume variance. The sales volume variance arises solely because actual units than the budgeted 2,800 units. The flexible budget variance in operating income is manufactured and sold were duo primarily to the in unit variable costs