The following partial budget versus actual report was prepared for Otis the Great, a manufacturer of dog chew toys disguised as "real life" items such as Crocs and bags of Goldfish:

	actual	flexible budget variance	flexible budget	volume variance	master budget
sales revenue	$102,000	?	$108,000	$18,000 F	?
variable expenses	?	$3,000 F	$60,000	?	$50,000
fixed expenses	$21,000	?	?	?	$25,000

Assuming the master budget was prepared for an activity level of 50,000 units and all products have the sales price and unit variable cost, which of the following statements is incorrect?

A.

The budgeted unit variable expense was $1.00.

B.

The volume variance for fixed expenses equalled $0.

C.

The actual unit sales price was $0.10 lower than the budgeted sales price.

D.

The actual units sold were 60,000.

E.

The flexible budget fixed expenses equalled $21,000.