Snuggle Toys,Inc As the Cost Accountant,which Single Note to the Above Financial

Snuggle Toys,Inc.had the following summarized results for the month ending July 31:
$$\begin{array} { | l | r | r | } \hline & \text { Actual } & \text { Budget } \\\hline \text { Revenues } & \$ 60,000 & \$ 52,000 \\\hline \text { Costs } & 53,600 & 45,600 \\\hline \text { Operating profits } & \$ 6,400 & \$ 6,400 \\\hline\end{array}$$
As the cost accountant,which single note to the above financial results is most appropriate in the report to management?

A) The departmental manager is performing to expectations because budgeted income equals actual income.
B) Revenues are above budget and a bonus based on this increase should be considered.
C) Costs as a percentage of revenues are above budget and a further scrutiny of the results might be appropriate.
D) Costs are 17.5% above budget and the department manager's position should be critically evaluated by senior management.