Flexible Budget Case Study 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. Flexible Actual Results 11,000 Budget Static Budget 10,000 Sales volume (in units) Sales revenues Variable costs $238,000 150,000 $ $230,000 180,000 Contribution margin 88,000 50,000 Fixed costs Operating profit 36,000 $ $ 52,000 35,000 $ 15,000 a. Prepare the Flexible Budget. b. What is the Operating Income Flexible Budget Variance? Is it fav or unfay? C. What was the primary reason for the Operating Income flexible budget variance