Top Managers of Yearon Ltd. predicted the following years sales of 147,500 units of its product at a unit price of $9.40. Actual sales for the year were 144,500 units at $11.00 each. Variable expenses were budgeted at $2.40 per unit, and actual variable expenses were $2.70 per unit. Actual fixed expenses of $460,000 exceeded budgeted fixed expenses by $32,500. Prepare Yearon Ltd. income statement performance report. What variance contributed most to the year's favourable results? What caused this variance?

Prepare Yearon Ltd.'s income statement performance report. (For accounts with a zero balance, make sure to enter "o" in the appropriate column. not select a label.) Yearon Ltd. Income Statement Performance Report For the Year Actual Results at Actual Prices Sales Volume Flexible Budget for Actual Number 1 Output Units Flexible Budget Variance Static (Master) Budget Variance Output units Sales revenue Variable expenses Fixed expenses Total expenses Operating income