The Body Balance Fitness 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	12,800	0		12,800	1,000	F	11,800
Sales Revenue	$62,770	$2,391	U	$65,161	$5,091	F	$60,070
Variable Costs	27,540	150	U	27,390	2,140	U	25,250
Contribution Margin	$35,230	$2,541	U	$37,771	$2,951	F	$34,820
Fixed Costs	34,280	270	U	34,010	0		34,010
Operating Income/(loss)	$950	$2,811	U	$3,761	$2,951	F	$810

Which of the following statements would be a correct factor to explain the flexible budget variance for variable costs?

A.

increase in variable cost per unit

B.

increase in sales volume

C.

increase in fixed costs

D.

decrease in sales price per unit