Stenback Pro Company managers received the following incomplete performance

report:

Learning Objective 1

$169,000 Op. Inc. for 55,000 units

Learning Objective 1

>

Variable Expenses

Units

Actual

Results

Flexible

Budget

Variance

Static

Budget

Flexible

Budget

Sales

Volume

Variance

Sales Revenue

Contribution Margin

Fixed Expenses

Operating Income

39,000 (a)

(b)

3,000 F

$ 26,000 $ 17,000

108,000 0

$ 218,000 $ 27,000 F

84,000 10,000

STENBACK PRO COMPANY

Flexible Budget Performance Report

For the Year Ended July 31, 2014

134,000 17,000

39,000

$ 36,000

101,000

$ 218,000

81,000

137,000

(c)

(d)

(e)

(f)

(h)

(g)

(i)

(j)

(k)

(l)

U

F

F

Complete the performance report. Identify the employee group that may deserve

praise and the group that may be subject to criticism. Give your reasoning.