For e$7-25$ below, include Fixed Costs of $$300,000($Static$)$ and $$320,000($Actual$).$ Prepare a performance report $($akin

to

Exhibit $7-2)$ with a flexible budget and a static budget. Comment on the results you found $($i$.$e$.,$ what did you find

happening in the company$).$

$7-25.$ FLEXIBLE$-$BUDGET AND SALES VOLUME

VARIANCES. Cascade, Inc., produces the basic fillings used in

many popular frozen desserts and treats$-$vanilla and chocolate

ice creams, puddings, meringues, and fudge. Cascade uses

standard costing and carries over no inventory from one month

to the next. The ice$-$cream product group's results for June $2020$

were as follows:

Jeff Geller, the business manager for ice$-$cream products, is

pleased that more pounds of ice cream were sold than budgeted

and that revenues were up$.$ Unfortunately, variable

manufacturing costs went up$,$ too. The bottom line is that

contribution margin declined by $$52,900,$ which is just over $2\%$

of the budgeted revenues of $$2,592,600.$ Overall, Geller feels that

the business is running fine.