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

Complete the performance report. (Enter a "O" for any zero balances. For any $0 variances, leave the Favorable (F)/Unfavorable (U) input blank.) McKnight Pro Company Flexible Budget Performance Report For the Year Ended July 31, 2018 Flexible Budget Variance Sales Volume Variance Actual Flexible Static Results Budget Budget 41,000 Units Sales Revenue Variable Expenses Contribution Margin Fixed Expenses Operating Income 41,000 $ 214,000 89,000 125,000 104,000 21,000 5,000 F $214,000 $ 23,000 F 7,000 U 16,000 F 0 83,000 131,000 101,000 $ 30,000 $ 16,000 FI