As head of the footwear unit for an athletic outfitter, you are reviewing sales figures for the past quarter. You discover that your production costs are higher than you budgeted because you sold $11,000$ units in the quarter instead of the $10,000$ you expected. What is the best way to deal with this budget variance?

Increase the selling price to reduce unit costs.

Take no action.

Reduce fixed expenses.

Reduce other expenses to reduce unit costs.