Response to the following problem:
Lions Company prepared a budget last period with budgeted sales of 55,000 units at a price of $75 each. Variable costs were budgeted to be $10 per unit. Fixed costs were budgeted to be $2,000,000 for the period. During the period, actual sales totaled 58,000 units.
Prepare a variance report to show the difference between the master budget and the flexible budget.