Capilla Company experienced a favorable sales volume variance and an unfavorable sales price flexible budget variance. Which of the following is a logical explanation for these variances?

a. The company increased its sales price and therefore sold fewer than it expected to sell.

b. The company reduced its sales price and therefore sold more items than it expected to sell.

c.The standard sales price per unit was lower than the actual price per unit while volume did not change

d. none of the answers is correct