Required information [The following information applies to the questions displayed below.] The fixed budget for 21,700 units of production shows sales of $607,600; variable costs of $65,100; and fixed costs of $144,000. The company's actual sales were 27,400 units at $723,200. Actual variable costs were $113,000 and actual fixed costs were $135,000. Prepare a flexible budget performance report. Indicate whether each variance is favorable or unfavorable. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) Sales Variable costs Contribution margin Fixed costs Income Flexible Budget Performance Report Flexible Budget Actual Results Favorable/ Variances Unfavorable Unfavorable 113,000 Unfavorable 0 (113,000) Unfavorable 144,000 $ 135,000 (144,000) $ (248,000) Favorable Unfavorable