Exercise 16-28 (Static) Profit Variance Analysis (LO 16-4) The master budget at Cherrylawn Corporation at the beginning of the year was based on sales of 275,000 units with revenues of $3,300,000. Total variable costs were budgeted at $1,925,000 and fixed costs at $950,000. During the period, actual production and actual sales were 255,000 units. The actual revenues were $3,442,500. Actual variable costs were $6.50 per unit. Actual fixed costs were $980,000. Required: Prepare a profit variance analysis. Note: Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Sales revenue Less: Variable costs Cherrylawn Corporation Profit Variance Analysis Manufacturing Actual Sales Price Variance Flexible Budget Variances Sales Activity Variance Master Budget U IF S 0 U S 0 Contribution margin S 0 Less: Fixed costs Operating profits S 0 S 0 S 0