The actual information pertains to the month of June. As a part of the budgeting process, Great Cabinets Company developed the following static budget for June. Great Cabinets is in the process of preparing the flexible budget and understanding the results. The flexible budget will report ________ for the fixed costs.

Actual Flexible Static

Results Budget Budget

Sales volume (in units) 20,000 22,000

Sales revenues $1,000,000 $ $1,100,000

Variable costs 480,000 $ ________ 530,200

Contribution margin 520,000 $ 569,800

Fixed costs 276,200 $ ________ 270,600

Operating profit $243,800 $ $299,200

Select one:

a. $246,000

b. $530,200

c. $270,600

d. $303,820