Assume that the static budget profit variance is $($$$200,000),$ while the flexible profit

variance is $$200,000.$ Which of the following statements about this particular

situation is correct?

When the volume forecast error in the flexible budget is accounted for, the

business' expected profit was lower than expected

The business made an actual profit of $$200,000$

When the volume forecast error in the flexible budget is accounted for, the

business' expected profit the same as expected

When the volume forecast error in the flexible budget is accounted for, the

business' expected profit was higher than expected