Question
The Washington Fish Company completed the flexible budget analysis for the second quarter, which is given below. Actual Results Flexible Budget Variance Flexible Budget Sales
The Washington Fish 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
12,870
0
12,870
1,070
F
11,800
Sales Revenue
$62,790
$1,240
U
$64,030
$3,990
F
$60,040
Variable Costs
27,590
610
U
26,980
$1,770
U
25,210
Contribution Margin
$35,200
$1,850
U
$37,050
$2,220
F
$34,830
Fixed Costs
34,290
230
U
34,060
$0
34,060
Operating Income/(Loss)
$910
$2,080
U
$2,990
$2,220
F
$770
Which of the following statements would be a correct analysis of the sales volume variance for operating income?
Select one:
a.increase in sales volume
b.increase in variable cost per unit
c.increase in fixed costs
d.decrease in sales price per unit
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