The Dear Dairy Cheese Company Completed the Flexible Budget Analysis

The Dear Dairy Cheese Company completed the flexible budget analysis for the second quarter,which is given below. $\begin{array}{|l|c|c|c|c|c|c|c|}\hline & \begin{array}{l}\text { Actual } \\\text { Results }\end{array} & \begin{array}{c}\text { Flexible } \\\text { Budget } \\\text { Variance }\end{array} && \begin{array}{l}\text { Flexible } \\\text { Budget }\end{array} & \begin{array}{c}\text { Sales } \\\text { Volume } \\\text { Variance }\end{array} && \begin{array}{c}\text { Static } \\\text { Budget }\end{array} \\\hline \text { Units } & \underline{12,800}_{} & \underline{0} && \underline{12,800} & \underline{1000} &\underline{\mathrm{F}} & \underline{11,800} \\\hline \text { Sales Revenue } & \$ 62,750 & \$ 2422 &\mathrm{U} & \$ 65,172 & \$ 5092 &\mathrm{~F} & \$ 60,080 \\\hline \text { Variable Costs } & \underline{27,550}_{} & \underline{182}&\underline{\mathrm{U}} & \underline{27,368} & \underline{\$ 2138} &\underline{\mathrm{U}} & \underline{25,230} \\\hline \text { Contribution Margin } & \$ 35,200 & \$ 2604& \mathrm{U} & \$ 37,804 & \$ 2954& \mathrm{F} & \$ 34,850 \\\hline \text { Fixed Costs } & \underline{34,200}_{} & \underline{200 }&\underline{\mathrm{U}} & \underline{34,000} & \underline{\$ 0} && \underline{34,000} \\\hline \begin{array}{l}\text {Operating } \\\text { Income/(Loss) }\end{array} & \underline{\$ 1000} & \underline{\$2804}&\underline{\mathrm{U}} & \underline{\$ 3804} & \underline{\$ 2954} &\underline{\mathrm{F}} & \underline{\$850}\\\hline\end{array}$ Which of the following statements would be a correct factor to explain the flexible budget variance for fixed costs?

A) decrease in sales price per unit
B) increase in variable cost per unit
C) increase in sales volume
D) increase in fixed costs