Refined Touch is a dating service. Rather than using algorithms, the company uses a traditional matchmaker. The company had the following income statement for April 2019: Refined Touch Income Statement (Actual vs Budget) For the Month Ended April 30 2019 Budget Actual 120 150 12,000 14,500 Number of matches Revenues Variable costs Matching Customer screening Payment processing Total variable costs Fixed costs Office expenses Rent expense Total fixed costs Total costs Net income 3,000 2,400 1.200 6,600 2,000 900 2.900 9.500 2.500 3,600 1,500 1.450 6,550 1,800 950 2.750 9.300 5.200 Variance 30 F 2,500 F 600 U 900 F 250 U 50 F 200 F 50 U 150 F 200 F 2.700 E Linda Frost, the manager and matchmaker comments on the report: "What a great month. We were busier than we expected to be and we still managed to keep costs down - I just wish every month could be this good". Required: a.) Comment on the major flaw in the report above. (4 marks) b.)Prepare a revised report using a flexible budget. (16 marks) c.) Comment on Frost's assertion that it was a "great month". (5 marks) d.) Which variance(s) ought to be investigated further? (5 marks) e.) Discuss briefly the advantages that a budgeting system brings to the Refined Touch. (5 marks)