E10-22A (similar to) Question Help Top managers of Warlon Ltd. predicted the following year's sales of 145,000 units of its product at a unit price of $9.40. Actual sales for the year were 140,500 units at $11.00 each. Variable expenses were budgeted at $2.25 per unit, and actual variable expenses were $2.85 per unit. Actual fixed expenses of $440,000 exceeded budgeted fixed expenses by $32,500. Prepare Warlon Ltd.'s income statement performance report. What variance contributed most to the year's favourable results? What caused this variance? Flexible Budget for Actual Results at Flexible Budget Actual Number of Sales Volume Static (Master) Budget Actual Prices Variance Output Units Variance 140500 0 140500 145000 Output units 1545500 Sales revenue 1320700 1320700 Variable expenses 316125 440000 Fixed expenses 756125 Total expenses 789375 Operating income