Surf Boards,Inc

Surf Boards,Inc.had the following summarized results for the month ending July 30: Assume that the budget was based on the sale of 104 surfboards at $500 each and the actual results reflect the sale of 104 surfboards.What is the most appropriate conclusion in the report to management?

A) If costs as a percentage of revenues had remained at the budgeted level,net income would have declined.
B) If costs as a percentage of revenues remain at the actual level any increase in revenues would probably be matched by a decrease in net income.
C) If costs as a percentage of revenues had remained at the budgeted level,net income would be $985 above budget.
D) If costs as a percentage of revenues had remained at the budgeted levels,net income would be $4,000 above budget.