Lothrop Consulting Group is a small firm that offers services to two business segments: not$-$for$-$profits $($NFPs$)$ and Corporate clients. Lothrop's business model is to rely to a great extent on non$-$employee consultants $($called "advisors"$)$ who are paid on an hourly basis. Lothrop is planning to expand operations into international markets and is concerned that its reporting system might need improvement. The master budget income statement for the company's latest quarter follows $($in thousands$).$

NFP Corporate Total

Sales revenue $ $2,800$ $ $3,800$ $ $6,600$

Costs

Advisor compensation $ $613$ $ $1,520$ $ $2,133$

Miscellaneous expenses $63114177$

Travel $143722865$

Equipment rental $425304729$

Advertising $4393136$

Depreciation $6389152$

Lease cost $93163256$

Salaries $250577827$

Total costs $ $1,693$ $ $3,582$ $ $5,275$

Operating profit $ $1,107$ $ $218$ $ $1,325$

The company uses the following performance report for management evaluation:

Lothrop Consulting Group

Net Income for the Quarter $($$$000)$

Actual Results NFP Corporate Total Budget Over$-$ or $($Under$-)$ Budgeta

Sales revenue $ $3,200$ $ $3,300$ $ $6,500$ $ $6,600$ $$(100)$

Costs

Advisor compensationb $ $1,326$ $ $1,496$ $ $2,822$ $ $2,133$ $ $689$

Miscellaneous expensesb $6868136177(41)$

Travelb $1491,0201,169865304$

Equipment rentalb $123440563729(166)$

Advertising $55881431367$

Depreciation $6389152152$

Lease cost $107420527256271$

Salaries $138320458827(369)$

Total costs $ $2,029$ $ $3,941$ $ $5,970$ $ $5,275$ $ $695$

Operating profit $ $1,171$ $ $(641)$ $ $530$ $ $1,325$ $$(795)$Required:

Prepare a profit variance analysis for the Corporate Business of Lothrop. $($Hint$.$ Use sales revenue as your measure of volume.$)$

Note: Do not round intermediate calculations. Enter your answers in thousands of dollars. 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.