A hotel manager prepares a flexible rooms expense budget for the next accounting period based on an ADR of $125.00 and 40,000 room nights sold. The manager achieves a $125.00 ADR but actually sells 45,000 room nights. What will most often be true about this manager’s performance when compared to the original operations budget?

a. Variable expense amounts will increase, fixed cost percentages will decrease and the departmental income percentage will increase.

b. Variable expenses amounts will decrease, fixed cost percentages will decrease and the departmental income percentage will increase.

c. Variable expenses amounts will increase, fixed cost percentages will increase and the departmental income percentage will increase.

d. Variable expenses amounts will increase, fixed cost percentages will decrease and the departmental income percentage will decrease.