Vernon Company has provided the following Year 2 data. Budget Sales Variable product costs Variable selling expense Other variable expenses Fixed product costs Fixed selling expense Other fixed expenses Interest expense Variances Sales Variable product costs Variable selling expense Other variable expenses Fixed product costs Fixed selling expense Other fixed expenses Interest expense Required $ 503,000 192,000 45,000 3,690 16,400 23,800 1,500 730 7,800 Unfavorable 4,500 Favorable 2,300 Unfavorable 1,200 Unfavorable 250 Favorable 420 Favorable 140 Unfavorable 130 Favorable Prepare a budgeted and actual income statement for internal use. Sales VERNON COMPANY Internal Income Statement for Year 2 Variable expenses! Product costs Selling expenses Other expenses Contribution margin Fixed expenses: Product costs Selling expenses Other expenses Operating income (loss) Interest expense Net income (loss) Budget Actual