The actual information pertains to the month of September. As part of the budgeting process, Kriger ...

The actual information pertains to the month of September. As part of the budgeting process, Kriger Fencing Company developed the following static budget for September. Kriger is in the process of preparing the flexible budget and understanding the results.

ActualFlexibleStatic
ResultsBudgetBudget
Sales volume (in units)10,00012,500

Sales revenues$500,000$$625,000
Variable costs256,000$ ________300,000

Contribution margin244,000$325,000

Fixed costs229,000$ ________225,000
Operating profit$ 15,000$ $ 100,000

The primary reason for low operating profits was ________.
A) the variable-cost variance
B) increased fixed costs
C) a poor management accounting system
D) lower sales volume than planned