Top managers of Fretan Ltd. predicted the following year's sales of 149,500 units of its product at a unit price of $9.20. Actual sales for the year were 141,500 units at $11.40 each. Variable expenses were budgeted at $2.50 per unit, and actual variable expenses were $3.10 per unit. Actual fixed expenses of $420,000 exceeded budgeted fixed expenses by $32,500. Prepare Fretan Ltd.'s income statement performance report. What variance contributed most to the year's favourable results? What caused this variance? Prepare Fretan Ltd.'s income statement performance report. (For accounts with a zero balance, make sure to enter "0" in the appropriate column. Label each variance as favourable (F) or unfavourable (U). If the variance is zero, do not select a label.) Fretan Ltd. Income Statement Performance Report For the Year Flexible Budget for Actual Results at Actual Number of Sales Volume Flexible Budget Variance Static (Master) Budget Actual Prices Output Units Variance Output units Sales revenue Variable expenses Fixed expenses Total expenses Operating income What variance contributed most to the year's favourable results? What caused this variance? The variance contributing most to the year's excellent results is the variance for sales revenue This variance resulted from buying the company's product at lower -than-expected prices. favourable flexible budget favourable sales volume unfavourable flexible budget unfavourable sales volume