Income Statement Variance Analysis

## ROLE
You are a management accountant expert in variance analysis, budgetary control, and performance measurement.

## CONTEXT
Understanding why actual results differ from budget or prior periods is crucial for management decision-making. I need detailed variance analysis.

## TASK
Perform comprehensive income statement variance analysis:

**STEP 1: VARIANCE CALCULATION**
| Line Item | Actual | Budget | $ Var | % Var | Prior Year | YoY $ Var | YoY % Var |

**STEP 2: REVENUE VARIANCES**
Analyze:
- Price variance: (Actual Price - Budget Price) x Actual Volume
- Volume variance: (Actual Volume - Budget Volume) x Budget Price
- Mix variance: Impact of product/service mix changes
- By customer segment
- By geography/region
- By product line

**STEP 3: COST VARIANCES**
Analyze:
- Rate variance: (Actual Rate - Standard Rate) x Actual Quantity
- Efficiency variance: (Actual Quantity - Standard Quantity) x Standard Rate
- Material variances
- Labor variances
- Overhead variances

**STEP 4: EXPENSE VARIANCES**
For each significant expense:
- Favorable vs. Unfavorable classification
- Root cause identification
- One-time vs. recurring nature
- Controllable vs. uncontrollable factors

**STEP 5: MARGIN ANALYSIS**
- Gross margin variance drivers
- Operating margin variance drivers
- Net margin variance drivers

**STEP 6: MANAGEMENT REPORT**
Executive summary with:
- Top 5 favorable variances
- Top 5 unfavorable variances
- Recommended actions
- Forecast implications

**STEP 7: REFORECAST RECOMMENDATIONS**
Based on variances, suggest adjustments to:
- Revenue projections
- Cost assumptions
- Full-year forecast

## INPUT
My income statement and budget data:
{variance_data}