Use the Partial Income Statement Below to Answer the Following

Use the partial income statement below to answer the following group of questions

$\begin{array}{lrrr} & \text { Actual } & \text { Budget } & \text { Difference } \\\text { Revenue from Sales } & \$ 65000 & \$ 55000 & 18 \% \\\text { Sales Discounts } & -5000 & -2000 & 150 \% \\\text { Net Sales } & 60000 & 53000 & 13 \% \\\text { Advertising } & 4000 & 1000 & 300 \% \\\text { Cost of Goods Sold } & 25000 & 28000 & -11 \% \\& & & \\\text { Sales Commissions } & 6000 & 3000 & 100 \% \\\text { Other Expenses } & 4000 & 4000 & 0 \% \\\text { Total Expenses } & 39000 & 36000 & 8 \%\\\\\text{Net Income}&\underline{21000}&17000& \mathbf{2 4 \%}\end{array}$
-Which one of the following is not a reasonable explanation for these results -

A) net income was higher than budgeted because sales were higher than budgeted
B) net income was higher than budgeted because some expenses were lower than budgeted
C) net income was higher than budgeted because the budget was not realistic
D) net income may have been higher because inventory prices were raised after the budget was set