1. Top managers of Kyler Industries predicted 2012 sales of 14,800 units of its product at a unit price of $8.50. Actual sales for the year were 14,600 units at $10.50 each. Variable costs were budgeted at $2.20 per unit, and actual variable costs were $2.30 per unit. Actual fixed costs of $41,000 exceeded budgeted fixed costs by $4,500.

Required: Prepare level two analyses?