Vernon Company has provided the following for the year. Budget Sales Variable product costs. Variable selling expense Other variable expenses Fixed product costs Fixed selling expense $520,000 200,000 44,000 2,800 15,600 24,200 Other fixed expenses 1,800 Interest expense 750 Variances Sales 8,000 U Variable product costs. 4,700 F Variable selling expense 1,800 U Other variable expenses 1,700 U Fixed product costs 240 F 440 F 150 U 180 F Fixed selling expense Other fixed expenses Interest expense Required a. Prepare in good form a budgeted and actual income statement for internal use. Separate operating income from net income in the statements and indicate whether each variance is favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).)