XYZ Manufacturing has provided the following budgeted and actual figures for the year 2023:

Budgeted Figures ($):

Revenue: 500,000

Cost of Goods Sold: 300,000

Operating Expenses: 100,000

Net Income: 50,000

Actual Figures ($):

Revenue: 450,000

Cost of Goods Sold: 320,000

Operating Expenses: 110,000

Net Income: 20,000

Requirements:

Calculate the variance for each line item.

Determine the percentage variance for each line item.

Analyze the reasons for the variances.

Assess the impact of variances on the net income.

Provide recommendations to address unfavorable variances.