The Maryland Cheese 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 12,870 0 12,870 1,070 F 11,800
Sales Revenue $62,740 $1,290 U $64,030 $4,020 F $60,010
Variable Costs 27,610 660 U 26,950 $1,680 U 25,270
Contribution Margin $35,130 $1,950 U $37,080 $2,340 F $34,740
Fixed Costs 34,300 280 U 34,020 $0 34,020
Operating Income/(Loss) $830 $2,230 U $3,060 $2,340 F $720

Which of the following statements would be a correct analysis of the flexible budget variance for fixed expenses?
A) decrease in sales price per unit
B) increase in variable cost per unit
C) increase in sales volume
D) increase in fixed costs

D