2. Using a contribution margin income statement format, create the static-budget (master budget), sales-activity, and flexible-budget variances and identify as favorable or unfavorable. Next, provide a detailed discussion of your analysis and findings. The discussion should include an explanation of the difference between the flexible-budget variance and the sales-activity variance you have identified. 3. Speedy Tires estimated serving 1,000 customers during the month, which would be comprised 50% corporate and 50% individual consumers. Actual results (see Panel 1) show sales were only 800 customers and comprised of 40% corporate and 60% individual consumers, demonstrating that, not only did Speedy have a sales-volume variance for operating income of $55,000, but they also had a sales price and a sales mix variance. Using the template provided below, calculate the sales price and sales mix variance and provide a discussion over your analysis and findings. Sales Price/Sales Mix Variance Actual Sales Flexible Budget Std Sales Price Budgeted Corp. Custar (Sed Sales Price Actual Corp. Cust) + (Std Actual Sales Level. /Std Sales Price Actual Soles Price Actual Consumer Cust) Consumer Custot Actual Sales Level) given Ponel 61 Price Variance Sales Mox Variance Flexible Budget anane Table 1: Operating and Financial Results by Wook and for the Moun continued) 2 Week 1 210 Panel 3 4 Werk 2 Week 3 182 $128.546 $94.691 $83,193 $44.802 7 Budget 1.000 238 6 Total 800 S423,840 5205, 206 3 Operating Income Volume units) Revenue Variable Cost Contribution Margin Fored Cost = Operating Income $115.500 4 5 Week 170 $85.000 $41,153 $43.847 $20,500 $23,347 $525.000 $250 800 $57,057 $58443 $49.892 $85,453 $27.000 5217635 $100.000 $25.000 $27.500 $30,313 $274200 $115,000 $159 200 $38,453 $24.92 $117,635 Panel 7 3 Week 2 4 Week 3 5 Week 4 6 Total Werk 1 Budget Operating income per Unit 2 Volume units Revenue # Vanable Cost Contribution Margin $525.00 $550.00 $22178 $S40.53 $26551 $52029 $24616 $500.00 $242.00 5257 92 5529.00 3257.26 $272 04 3:25.00 $275,01 $274.13 $278.30 $13095 $14735 $120.59 $113.45 $16:52 $13735 $136.77 Operating Income $14704 $159.20 Figure 1: Partial Organization Chart for Speedy Tire Co. District General Manager Carla Die Sales Manape District Purcha. Mana Ein Grey Branch Sty Manager Julian Moxie Incide 2. Using a contribution margin income statement format, create the static-budget (master budget), sales-activity, and flexible-budget variances and identify as favorable or unfavorable. Next, provide a detailed discussion of your analysis and findings. The discussion should include an explanation of the difference between the flexible-budget variance and the sales-activity variance you have identified. 3. Speedy Tires estimated serving 1,000 customers during the month, which would be comprised 50% corporate and 50% individual consumers. Actual results (see Panel 1) show sales were only 800 customers and comprised of 40% corporate and 60% individual consumers, demonstrating that, not only did Speedy have a sales-volume variance for operating income of $55,000, but they also had a sales price and a sales mix variance. Using the template provided below, calculate the sales price and sales mix variance and provide a discussion over your analysis and findings. Sales Price/Sales Mix Variance Actual Sales Flexible Budget Std Sales Price Budgeted Corp. Custar (Sed Sales Price Actual Corp. Cust) + (Std Actual Sales Level. /Std Sales Price Actual Soles Price Actual Consumer Cust) Consumer Custot Actual Sales Level) given Ponel 61 Price Variance Sales Mox Variance Flexible Budget anane Table 1: Operating and Financial Results by Wook and for the Moun continued) 2 Week 1 210 Panel 3 4 Werk 2 Week 3 182 $128.546 $94.691 $83,193 $44.802 7 Budget 1.000 238 6 Total 800 S423,840 5205, 206 3 Operating Income Volume units) Revenue Variable Cost Contribution Margin Fored Cost = Operating Income $115.500 4 5 Week 170 $85.000 $41,153 $43.847 $20,500 $23,347 $525.000 $250 800 $57,057 $58443 $49.892 $85,453 $27.000 5217635 $100.000 $25.000 $27.500 $30,313 $274200 $115,000 $159 200 $38,453 $24.92 $117,635 Panel 7 3 Week 2 4 Week 3 5 Week 4 6 Total Werk 1 Budget Operating income per Unit 2 Volume units Revenue # Vanable Cost Contribution Margin $525.00 $550.00 $22178 $S40.53 $26551 $52029 $24616 $500.00 $242.00 5257 92 5529.00 3257.26 $272 04 3:25.00 $275,01 $274.13 $278.30 $13095 $14735 $120.59 $113.45 $16:52 $13735 $136.77 Operating Income $14704 $159.20 Figure 1: Partial Organization Chart for Speedy Tire Co. District General Manager Carla Die Sales Manape District Purcha. Mana Ein Grey Branch Sty Manager Julian Moxie Incide