Explain the budgeted income statement

You are hired as a new cost accountant to Ciccetti Corporation. The company manager, David, is having a meeting with you in his office. He brought you this
budgeted income statement that was completed by the previous cost accountant. David asks you to provide him with a report explaining the statement in
clear, straightforward language, and how you plan to handle the annual budget.
Flexible Budget Performance Part 2
Flexible Budget Activity Variances Planning Budget
Customers served (q) 36,000 33,000
Revenue ($4.80q) $172,800 $14,400 F $158,400
Expenses:
Wages and salaries ($36,900 + 1.60q) 94,500 4,800 U 89,700
Supplies ($0.90q) 32,400 2,700 U 29,700
Insurance ($13,300) 13,300 0 13,300
Miscellaneous Expense ($6,300 + $0.40q) 20,700 1,200 U 19,500
Total expense 160,900 8,700 U 152,200
Net operating income $11,900 $5,700 F $6,200
Instructions
Write a 2–3 page report in which you:

1. Explain the budgeted income statement.
2. Outline how you would create annual budgeted financial statements.
3. Analyze the difference between a static budget and a flexible budget, including the importance of each.
4. Evaluate the importance of reading and correctly interpreting budgeted financial statements.
5. Use three sources to support your writing. Choose sources that are credible, relevant, and appropriate. Cite each source listed on your source page at least
   one time within your assignment.