7-36: Level 2 variance analysis, solve for unknowns. Homerun Headgear manufacturers and distributes baseball caps to ballparks and other sports venues. Homerun's plan for 2019 forecast sales of 600,000 caps. However, only 500,000 caps were sold. Based on the following data, calculate the missing numbers and complete the analysis. Homerun Headgear Performance Report, Year Ended December 31, 2019 Actual Flexible-Budget Flexible Sales-Volume Results Variances Budget Variances (1) (2) -(1)-(3) (4) - (3) - (5) Units sold 500,000 Revenues (sales) $5,000,000 Variable costs 1,400,000 Contribution margin $1,100,000 F $500,000 Fixed costs 1,150,000 $1,000,000 Operating income Static Budget (5) 600,000 $4,800,000 1,800,000 1,000,000 Level 2 Flexible-budget variance Sales-volume variance Level 1 Static-budget variance 1. Calculate the budgeted and actual selling prices. 2. Assuming that the driver for variable costs is units sold, what are the budgeted and actual variable costs per unit? 3. Calculate the flexible-budget operating income. 4. Calculate the flexible-budget variance for operating income. 5. Calculate the sales-volume variance for operating income. 6. Calculate the static-budget variance for operating income. Note: F- favorable effect on operating income U-unfavorable effect on operating income