1: Prepare a variance analysis report based on the information in Exhibit 1. Would this be sufficient to explain the profit shortfall to Norton at the 8 AM meeting? Formulas and approach: Variance analysis formula: Total revenue variance = AR - ER Use this formula to conduct a variance analysis on Revenues below. Do the same for Expenses and Profits. Your Solution: Revenues Expenses Profits Actual Value Budgeted Value Variance Amount Favorable/Unfavorable? Exhibit 1: Norton Associates, Income Statement, Q2 2000 Revenues Expenses Operating Profit Profit Percentage Actual 3,264,000 $ 2,967,610 296,390 $ 9.1% Budget 3,231,900 2,625,550 606,350 18.8%