Abulafia Srl manufactures tyres for the Formula 1 motor racing circuit. For August 2022 Abulafia budgeted to manufacture and sell 3000 tyres at a variable cost of €74 per tyre and a total fixed cost of €54 000. The budgeted selling price was €110 per tyre. Actual results in August 2022 were 2800 tyres manufactured and sold at a selling price of €112 per tyre. The actual total variable costs were €229 600, and the actual total fixed costs were €50 000.

Required

1 Prepare a performance report that uses a flexible budget and a static budget.

2 Comment on the results in requirement 1.