You have recently purchased the Tiny Tots Daycare. The most recent monthly Budget versus Actual Income Statement ended June has been supplied below . Tiny Tots Daycare Income Statement For the Month ended June Budget Actual Number of child care hours 6,000 5,000 Revenue Full Day daycare revenue 270,000 220,000 Half day daycare reveneu 150,000 125,000 420,000 345,000 Variable Costs Labour 114,000 105,000 Maintenance 3,000 2,500 food 108,000 70,000 toys 25,000 20,000 Depreciation 2,400 2,000 252,400 199,500 Fixed Costs Management Fees 35,000 35,000 Rent 35,000 35,000 Utilities 7,500 8,000 77,500 78,000 Income (Loss) before taxes 90,100 67,500 As the owner of the daycare, you are mad about the results, however you are not so confident on that assumption. Required: - Prepare a flexible budget to actual income statement and evaluate if your negative opinion on the results of the daycare is correct. Briefly discuss. - Are there any line items that you would want to investigate the differences in variances? Which ones and why?