Prepare a summary that shows the variances, discusses possible reasons for the variances, and in the case of adverse variances, how they might be avoided in future

Budget Actual Variance Units 375,000 '000s 28,125 350,000 '000s 28,000 25,000 '000s 125 Sales Variable Costs Materials Labour Distribution Total Variable Costs 5,625 1,875 1,125 8,625 5,600 1,575 1,085 8,260 25 300 40 365 Contribution 19,500 19,740 240 Fixed Costs Quality control Premises Administration Total Fixed Costs 210 4,000 2,500 6,710 170 4,120 2,400 6,690 40 120 100 20 Operating Profit 12,790 13,050 260