McKnight Company€™s managers received the following incomplete performance report:

Requirement
Complete the performance report. Identify the employee group that may deserve praise and the group that may be subject to criticism. Give your reasons.

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McKnight Company Income Statement Performance Report Year Ended July 31 Actual Flexible Budget Results Flexible for Actual Sales Static at ActualBudgNumber of Vlum(Master) Prices Variance Output Units VarianceBudget 38,000 Output units Sales revenue Variable costs Fixed costs Total costs Operating income 2,000 F $219,000 S24,000 F 38,000 $219,000 80,000 10,000 U 100,000 81,000 _ 107,000 188,000 S 31,000 180,000 10,000 U- 39,000 14,000 F