Answer is complete but not entirely correct. Sales Variable expenses Contribution margin Fixed expenses Income from operations BAY CITY COMPANY Flexible Budget Performance Report For Month Ended July 31 Flexible Actual Variances Fav./Unf. budget results 560,000 $ 623,000 $ 63,000 Favorable 388,889 416,000 32,111 Favorable 171,111 202,000 22,889 X Favorable 144,000 134,000 10,000 Favorable $ 27,111 $ 68,000 $ 32,889 Favorable Bay City Company's fixed budget performance report for July follows. The $594,000 budgeted total expenses include $450,000 variable expenses and $144,000 fixed expenses. Actual expenses include $134,000 fixed expenses. Fixed Budget Variances Sales (in units) Sales (in dollars) Total expenses Income from operations 8,109 $648,000 594,000 $ 54,000 Actual Results 7,000 $ 623,000 560,000 $ 63,000 $25,000 U 34,000 F $9,000 U Prepare a flexible budget performance report that shows any variances between budgeted results and actual results. List fixed and variable expenses separately. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance. Do not round your intermediate calculations. Round your final answers to whole dollars.)