Q2 Martinez Tax Services prepares ted client returns. Direct labour for part-time Q2 sub ER 57 tax preparers is I the following performance report for the current year 2 8 8 Martinez Tax Services Performance Report For the Year Ended June 30. 2023 Actual Budget Number of returns Service fees $102.500 $109 090 variable costs Direct labour 51 200 55.000 Misc admin 31 800 33,400 Total variable costs 83,000 68,400 contribution margin 19,500 20,600 Fixed overhead 2,900 3,000 operating income (loss) $16 600 $17 600 Required: 1. Evaluate this business performance report a) Using this report, how would you evaluate business performance? b) Explain why. 1.0 2. Prepare a performance report using the flexible budget approach. (10 marks) Morone: Tax Services Flexible Budget Performance Report For the year Ended june ! Actual Variances Number of returns 450 5 Per return Service fees $:92 500 Variable Costs 90 Direct abou Total variable Costs 93 Contribution margin Fixed overhead 2 900 Operating income (loss)" 516 600