The Maine Oyster Company completed the flexible budget analysis for the second quarter, which is given below
Actual Results Flexible Budget Variance Flexible Budget Sales Volume Variance Static Budget
Units 12,820 0 12,820 820 F 12,000
Sales Revenue $62,740 $1,300 U $64,040 $3,950 F $60,090
Variable Costs 27,540 620 U 26,920 $1,620 U 25,300
Contribution Margin $35,200 $1,920 U $37,120 $2,330 F $34,790
Fixed Costs 34,240 230 U 34,010 $0 34,010
Operating Income/(Loss) $960 $2,150 U $3,110 $2,330 F $780
Which of the following statements would be a correct analysis of the flexible budget variance for sales revenue?
A) decrease in sales price per unit
B) increase in variable cost per unit
C) increase in sales volume
D) increase in fixed costs
A
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