The management of Magnificent Modems, Incorporated $($MMI$)$ is uncertain as to the volume of sales that will exist in Year $1.$ The president of the company asked the chief accountant to prepare flexible budget income statements assuming that sales activity amounts to $3,000$ and $6,000$ units. The static budget is shown in the following form.

Required

a$.$ Complete the following worksheet to prepare the appropriate flexible budgets.

b$.$ Calculate and show the flexible budget variances for the static budget versus the flexible budget at $6,000$ units.

c$.$ Indicate whether each variance is favorable $($F$)$ or unfavorable $($U$).$

Note: Select "None" if there is no effect $($i$.$e$.,$ zero variance$).$

$\backslash$table$[[$MAGNIFICENT MODEMS, INCORPORATED$],[$Flexible Budget Income Statements$],[,\backslash$table$[[$Cost per$],[$unit$]],\backslash$table$[[$Static$],[$Budget$]],$Flexible Budgets,Volume Variance$],[$Number of units,,,$4,000,,3,000,,6,000,,,],[$Sales revenue,$140,$$$,560,000,$$$,420,000,$$$,840,000,$$$1,140,000|F|,F$