Stenback Pro Company managers received the following incomplete performance report:

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

STENBACK PRO COMPANY Income Statement Performance Report Year Ended July 31, 2012 Flexible Budget for Actual Results at Flexible Budget Actual Number of Static (Master) Budget Sales Volume Actual Prices Variance Units Sold Variance Output units 3,000 F 39,000 39,000 218,000 $ %24 Sales revenue 218,000 27,000 F Variable expenses 84,000 81,000 10,000 U Contribution margin $ 137,000 $ 134,000 17,000 F Fixed expenses 108,000 101,000 26,000 17,000 F Operating income 36,000 S