XYZ Corporation budgeted sales of $500,000 with variable costs of $300,000 and fixed costs of $100,000. However, actual results were different: sales were $450,000, variable costs were $280,000, and fixed costs were $110,000. Perform a variance analysis and answer the following:

• Requirement 1: Compute the sales volume variance and sales price variance.
• Requirement 2: Calculate the variable cost variance and fixed cost variance.
• Requirement 3: Discuss possible reasons for the variances and recommend actions to improve performance in the future.