Complete and interpret a performance report (Learning Objective 2)
Joe Boxer Company’s managers received the following incomplete performance report:

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

JOE BOXER COMPANY Income Statement Performance Report Year Ended July 31, 2007 Actual Flexible Budget Results Flexible for Actual Sales at Actual Budget Number of Volume Prices Variance Output Units Variance Static (Master) Budget Output units 36,000 ? 36,000 4,000 F ? Sales revenue $216,000 ? $216,000 $24,000 F ? Variable expenses 84,000 ? 81,000 9,000 U ? Fixed expenses 106,000 2 100,000 -0- ? Total expenses 190,000 ? 181,000 9,000 U ? Operating income $ 26,000 ? $ 35,000 $15,000 F ?