The Groton Company produces engine parts for car manufacturers. A new accountant intern at Groton has accidentally deleted the calculations on the company's variance analysis calculations for the year ended December31,2017. The following table is what remains of the data.

Performance Report
Year Ended December 31, 2017
	Actual	Flexible-Budget	Flexible	Sales-Volume	Static
	Results	Variances	Budget	Variances	Budget
Units sold	106,000				97,000
Revenues (sales)	$683,700				$315,250
Variable costs	430,000				145,500
Contribution margin	253,700				169,750
Fixed costs	178,950				95,000
Operating income	$74,750				$74,750

PrintDone

1.	Calculate all the required variances. (If your work is accurate, you will find that the total static-budget variance is $0.)
2.	What are the actual and budgeted selling prices? What are the actual and budgeted variable costs per unit?
3.	Review the variances you have calculated and discuss possible causes and potential problems. What is the important lesson learned here?