Please complete the flexible budget income statement

Flowing Bubbles, Inc., produces multicolored bubble solution used for weddings and other events EEB (Click the icon to view the master budget income statement.) Flowing Bubbles' plant capacity is 62,500 kits. If actual volume exceeds 62,500 kits, the company must expand the plant ln that case salaries will increase by 10%, depreciation by 15%, and rent by S4,000 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 2 Graph the behavior ofthe company's total costs. Use total costs on the y-axis and volume in 3. Why might Flowing Bubbles managers want to see the graph you prepared in Requirement 2 as well 60,000, and 65,000 kits thousands of bubble kits) on the x-axis as the columnar format analysis in Requirement 1? What is the disadvantage of the graphic approach? Hlowing Bubbles, Inc. Flexible Budget Income Statement Month Ended July 31 i Data Table Flexible Budget per Output Unit The company's master budget income statement for July follows. It is based on expected sales volume of 55,000 bubble kits. Flowing Bubbles, Inc. Master Budget Income Statement Month Ended July 31 Output Units (Kits) 60,000 55,000 65,000 Sales revenue $ 159,500 Sales revenue Variable expenses Variable expenses: Cost of goods sold Sales commissions Utility expense Cost of goods sold Sales commissions Utility expense $ 68,750 11,000 8.250 Fixed expenses Fixed expenses Salary expense Depreciation expense Rent expense Utility expense 30,000 20,000 11,000 6,000 $ 155,000 4,500 Salary expense Depreciation expense Rent expense Utility expense Total expenses Total expenses Operating income Operating income