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The Crockery Pottery Company completed the flexible budget analysis for the second quarter, which is given below. Flexible Sales Actual Budget Flexible Volume Static Results
The Crockery Pottery Company completed the flexible budget analysis for the second quarter, which is given below. Flexible Sales Actual Budget Flexible Volume Static Results Variance Budget Variance Budget Units 12,810 12,810 810 F 12,000 Sales Revenue $62,790 $1,292 U $64,082 $4,052 F $60,030 Variable Costs 27,520 608 U 26,912 $1,702 U 25,210 Contribution Margin $35,270 $1,900 U $37,170 $2,350 F $34,820 Fixed Costs 34,300 200 U 34,100 $0 34,100 Operating Income/(Loss) $970 $2,100 U $3,070 $2,350 F $720 Which of the following would be a correct factor to explain the sales volume variance for sales revenue? O A. increase in sales volume O B . increase in variable cost per unit O c. increase in sales price per unit OD. increase in fixed costs
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