The Carolina Products Company Has Just Completed a Flexible Budget

question 76

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 flexible budget 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

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