The Carolina Products Company Has Just Completed a Flexible Budget

Multiple Choice

The Carolina Products Company has just completed a flexible budget analysis of 2^nd quarter operating income, as shown here:

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Based on the above data, which of the following statements would be a correct interpretation of the sales volume variance for variable expenses?

A) Decrease in price per unit
B) Increase in variable cost per unit
C) Increase in sales volume
D) Increase in fixed costs