The following foed budget items were prepared at the beginning of 2021 Sales (predicted at 6,500 units) $422.500 Variable Costs 227.500 Fixed Costs 125,000 Operating Income 70,000 At the end of 2021, the company reported the results shown below for the sale of 7.500 units of the total expenses, 68% were variable and the remainder were fixed. Sales $504,375 Expenses 398.000 Operating Income 106,375 Instructions: In the variance requirements b-e below. show the budgeted amount to be used for the analysis, the actual amount, and then the mathematical variance followed by For Ufor favorable or unfavorable variance. (For example Budgeted Sales - XXX, Actual Sales - XXX. Variance - XX.F) with -Complete the following statement: To properly calculate variances, compare the flexible budget amounts at b-Calculate the Sales variance and indicate if the variance is favorable or unfavorable c-Explain what caused the sales variance in (a) above. d-Calculate the variable cost variance and indicate if the variance is favorable or unfavorable e-Calculate the foxed cost variance and indicate if the variance is favorable or unfavorable