Top managers of Warlon Ltd. predicted the following year's sales of 147,500 units of its product at a unit price of $8.60. Actual sales for the year were 144.500 units at $11.20 each. Variable expenses were budgeted at $2.30 per unit, and actual variable expenses were $3.10 per unit. Actual fixed expenses of $440,000 exceeded budgeted fixed expenses by $32,500. Prepare Warlon Ltd.'s income statement performance report. What variance contributed most to the year's favourable results? What caused this variance? Prepare Warlon 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.) Warlon Ltd. Income Statement Performance Report For the Year Actual Results at Flexible Budget for Actual Number of Output Units Flexible Budget Variance Sales Volume Static (Master) Budget Actual Prices Variance Output units Sales revenue Variable expenses Fixed expenses Total expenses Operating income