An unfavorable sales volume variance in operating income suggests a(n)________.

Question

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An unfavorable sales volume variance occurs when the actual number of units sold is less than the expected number of units sold. This would result in a decrease in operating income compared to what was expected. Option A suggests an increase in sales volume which would result in a favorable variance. Option C suggests an increase in variable expenses which would have its own variance. Option D suggests a decrease in fixed costs which is not related to sales volume variance.

An Unfavorable Sales Volume Variance in Operating Income Suggests A(n)________