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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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