You are hired as a new cost accountant at Ciccetti Corporation. The company manager, David, is having a meeting with you in his office. He brought you this budgeted income statement that was completed by the previous cost accountant. David asks you to provide him with a report explaining the statement in clear, straightforward language, and how you plan to handle the annual budget. Flexible Budget Performance Part 2 Flexible Budget Activity Variances Planning Budget Customers served (q) 36,000 33,000 Revenue ($4.80q) $172,800 $14,400 F $158,400 Expenses: Wages and salaries ($36,900 1.60q) 94,500 4,800 U 89,700 Supplies ($0.90q) 32,400 2,700 U 29,700 Insurance ($13,300) 13,300 0 13,300 Miscellaneous Expense ($6,300 $0.40q) 20,700 1,200 U 19,500 Total expense 160,900 8,700 U 152,200 Net operating income $11,900 $5,700 F $6,200 Instructions Write a 2-3 page report in which you: Explain the budgeted income statement. Outline how you would create annual budgeted financial statements