Murphy Company managers received the following incomplete performance report:
MURPHY COMPANY
Flexible Budget Performance Report
For the Year Ended July 31, 2018

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

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Flexible Sales Budget Results Variance Budget Actual Flexible Volume Static Variance Budget Units 35,000 (a) 35,000 5,000 F (g) $ 219,000 $ 27,000 F (C) $ 219,000 Sales Revenue (b) (h) 13,000 U 0) O) Variable Expenses 85,000 84,000 Contribution Margin 134,000 (d) 135,000 14,000 F Fixed Expenses 105,000 (e) 100,000 (k) $ 35,000 $ 14,000 F $ 29,000 Operating Income (f) (1)