The Chesapeake Oyster Company completed the flexible budget analysis for the second quarter, which is given below. Flexible Sales Budget Flexible Volume Actual Results Variance Budget Variance Units 12,880 0 980 Sales Revenue $62,740 $2,2230 $64,963 $4,943 F Variable Costs 27,550 221 U 27,329 $2,079 U Contribution Margin $35,190 $2,444 U $37,634 $2,864 F Fixed Costs 34,300 230 V 34,070 SO Operating Income/(Loss) $890 $2,674 U $3,564 $2,864 F 12,880 TIC TITI Static Budget 11,900 $60,020 25,250 $34,770 34,070 $700 Which of the following statements would be a correct factor to explain the flexible budget variance for sales revenue? A. increase in variable cost per unit B. decrease in sales price per unit O C. increase in fixed costs OD. increase in sales volume Smith, Inc. has a division that manufactures a component that sells for $700 and has a variable cost of $350. Another division of the company wants to purchase the component. Fixed cost per unit of the component is $130. What is the minimum transfer price if the division manufacturing the component is operating below its capacity? A. $130 B. $480 O C. $700 OD. $350