Top managers of Manion Industries predicted the following year’s sales of 145,000 units of its product at a unit price of $8. Actual sales for the year were 140,000 units at $9.50 each. Variable expenses were budgeted at $2.20 per unit and actual variable expenses were $2.30 per unit. Actual fixed expenses of $420,000 exceeded budgeted fixed expenses by $20,000. Prepare Manion Industries’ income statement performance report in a format similar to E10-20. What variance contributed most to the year’s favourable results? What caused this variance?