The actual information pertains to the third quarter. as part of the budgeting process, the duck decoy department of paralith incorporated had developed the following static budget for the third quarter. duck decoy is in the process of preparing the flexible budget and understanding the results.
actual flexible static
results budget budget
sales volume (in units) 15,000 11,000
sales revenues $245,000 $ $235,000
variable costs 139,000 $ 184,000
contribution margin 106,000 $ 51,000
fixed costs 42,000 $ 31,000
operating profit $64,000 $ $20,000
the flexible budget will report for variable costs.