Top managers of Yearon Ltd. predicted the following year's sales of 148,000 units of its product at a unit price of $8. Actual sales for the year were 140,500 units at $11.80 each. Variable expenses were budgeted at $2.50 per unit, and actual variable expenses were $2.75 per unit. Actual fixed expenses of $430,000 exceeded budgeted fixed expenses by $42,500. Prepare Yearon Ltd.'s 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 "0" in the appropriate column. Label each variance as favourable (F) or unfavourable (U). If the variance is zero, do not select a label.) Yearon Ltd. Income Statement Performance Report For the Year Flexible Budget for Actual Results at Flexible Budget Actual Number of Actual Prices Variance Output Units 140500 140500 Sales Volume Variance Static (Master) Budget 148000 1657900 533900 F 1124000 60000 1184000 Output units Sales revenue Variable expenses Fixed expenses 386375 35125 U 351259 18741 F 370000 430000 52500 U 387500 387500 816375 77616 U 738759 18741 Total expenses F 757500 841525 456284 385241 41259 426500 F Operating income U