Bay City Company's fixed budget performance report for July follows. The $440,000 budgeted total expenses include $300,000 variable expenses and $140,000 fixed expenses. Actual expenses include $130,000 fixed expenses. Fixed Budget Actual Results Variances Sales (in units) Sales (in dollars) Total expenses 6,000 $480,000 440,000 4,900 $441,000 404,000 Income from operations $ 40,000 $ 37,000 $39,000 U 36,000 $ 3,000 U Prepare a flexible budget performance report that shows any variances between budgeted results and actual results. List fixed and variable expenses separately. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance. Do not round your intermediate calculations. Round your final answers to whole dollars.) BAY CITY COMPANY Flexible Budget Performance Report For Month Ended July 31 Sales Variable expenses Contribution margin Fixed expenses Income from operations $ Flexible budget Actual results 392,000 $ 441,000 Variances Fav./Unf. Favorable No variance Favorable Favorable Favorable