B.Bagus Bhd (BB) manufactures calculators for engineers. There are TWO (2) main departments in BB, namely the sales department and operations department. The current standard costs of one unit of the product are as follows: \ \ RM RM \ Selling price 10.5 \ Direct labour 2.3 \ Direct materials 1.5 3.8 \ Contribution margin 6.7 \ Fixed cost (based on budgeted monthly output of 20,000 units) 3.3 \ Operating income 3.4 \ \ \ During last month, due to an unexpected fall in demand for the product, only 15,000 units were made and sold. \ \ The actual results for the last month were as follows: \ \ RM RM \ Selling price 165,000 \ Direct labour 35,040 \ Direct materials 23,360 58,400 \ Contribution margin 106,600 \ Fixed cost 67,350 \ Operating income 39,250 \ \ \ REQUIRED: \ \ (a)Develop a flexible operating income budget for 15,000 units, 20,000 units and 25,000 units of production. \ (6 Marks) \ \ (b)Compare the flexible budget with the actual results. \ (3 Marks) \ \ (c)Based on your answer in (b), state which department is performing effectively. Explain the situation. \ (1 Mark)