Treanor Enterprises manufactures tires for the Formula 1 motor racing circuit. For August 2017, it budgeted to manufacture and sell 2,700 tires at a variable cost of $80 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 $114 per tire. The actual total variable costs were $228,800, and the actual total fixed costs were $51,500. 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 "0" 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 There is a(n) total flexible-budget The total static-budget variance in operating income is $ variance and an) sales-volume variance. The sales-volume variance arises solely because actual units than the budgeted 2,700 units. The flexible-budget variance in operating income is due manufactured and sold were primarily to the in unit variable costs