Top managers of Lortan Industries predicted the following year’s sales of 147,000 units of its product at a unit price of $9.20. Actual sales for the year were 144,000 units at $11.60 each. Variable expenses were budgeted at $2.35 per unit, and actual variable expenses were $2.80 per unit. Actual fixed expenses of $430,000 exceeded budgeted fixed expenses by $27,500. Prepare Lortan Industries’ income statement performance report. What variance contributed most to the year’s favourable results? What caused this variance?