Unified Products Inc. makes and sells a unique product. At the beginning of the current year, the company had anticipated selling 10,000 of these units; however, 11,000 units were actually produced and sold. Below is the company's static budget as well as actual results for the year:

(static budget) (actual results) at 10,000 units at 11,000 units Sales revenue $800,000 $902,000 Variable costs: Direct materials 90,000 103,400 Direct labor 100,000 121,000 Overhead 50,000 60,500 Contribution margin 560,000 617,100 Fixed costs 200,000 210,000 Net income $360,000 $407,100

Required:

A. Prepare a flexible budget for the year. B. Calculate the flexible budget variance for the year. Indicate whether it is favorable or unfavorable. C. Calculate the sales price variance for the year. Indicate whether it is favorable or unfavorable.