Question

The Crockery Pottery Company completed the flexible budget analysis for the second​ quarter, which is given below.

Actual Flexible Budget Flexible Sales Volume Static
Results Variance Budget Variance Budget
Units 12,840 0 12,840 940 F 11,900
Sales Revenue $62,770 $ 2,023U $ 64,793 $ 4,743F $ 60,050
Variable Costs 27,560 315 U 27,245 $ 1,995 U 25,250
Contribution
Margin $ 35,210 $ 2,338 U $ 37,548 $ 2,748 F $ 34,800
Fixed Costs 34,210 170 U 34,040 $ 0 34,040
Operating​ Income
/(Loss) $ 1,000 $ 2,508 U $ 3,508 $ 2,748 F $ 760

Which of the following would be a correct factor to explain the sales volume variance for sales​ revenue?
A. increase in sales volume
B. increase in variable cost per unit
C. increase in sales price per unit
D. increase in fixed costs

Answer 1

A. increase in sales volume

Step-by-step explanation:

Base on the scenario been described in the question, the one that would best explain the sales volume variance for sales​ revenue will be increase in sales volume according to the to the table given above