ith different volumes for planning Learsind Objective 5) Outrageous Bubbles, Inc, produces multicolored bubble solution used for weddings and other events. The company's master budget income statement March follows. It is based on expected sales volume of 55,000 bubble kits. for OUTRAGEOUS BUBBLES, INC Master Budget Income Statement Month Ended March 31 Sales revenue Variable expenses: $170,500 Cost of goods sold Sales commissions Unlity expense S 68,750 13,750 5,500 Fixed expenses: Salary expense 30,000 20,000 15,000 Rent expense Urility expense Total expenses Operating $160,000 S 10500 Outrageous Bubbles plant capacity is 62,500 kits. If actual volume exceeds 62,500 kits, the company must expand the plant. In that case, salaries will increase by %, depreciation by 15%, and rent by $4,000. Fixed utilities will be unchanged by any volume increase. Requirements 1. Prepare flexible budget income statements for the company, showing output levels of 55,000, 60,000, and 65,000 kits. 2. Graph the behavior of the company's total costs. Use total costs on the y- axis and volume (in thousands of bubble kits) on the x-ais. 3. Why might Outrageous Bubbles managers want to see the graph prepared in Requirement 2 ss well as the columnar format analysis in Requirement 1? What is the disadvantage of the graphic approach