The actual information pertains to the third quarter. As part of the budgeting process, the controller for Foley Manufacturing had developed the following static budget for the third quarter. The primary reason for high actual operating profits was ________.

Actual Flexible Static

Results Budget Budget

Sales volume (in units) 11,000 10,000

Sales revenues $238,000 $ $230,000

Variable costs 150,000 $ ________ 180,000

Contribution margin 88,000 $ 50,000

Fixed costs 36,000 $ ________ 35,000

Operating profit $ 52,000 $ $ 15,000

Select one:

a. increased fixed costs

b. lower sales volume than planned

c. the variable-cost variance

d. flexible budget variance for revenues