The Carolina Rubber Products 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 12,840 0 12,840 840 F 12,000
Sales Revenue $62,740 $1,290 U $64,030 $3,970 F $60,060
Variable Costs 27,530 590 U 26,940 $1,740 U 25,200
Contribution Margin $35,210 $1,880 U $37,090 $2,230 F $34,860
Fixed Costs 34,240 180 U 34,060 $0 34,060
Operating Income/(Loss) $970 $2,060 U $3,030 $2,230 F $800
Which of the following would be a correct analysis of the sales volume variance for sales revenue?
A) increase in sales price per unit
B) increase in sales volume
C) increase in variable cost per unit
D) increase in fixed costs
B
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