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 Results 13,000 Flexible Budget Static Budget 12000 Sales volume (in units) Sales revenues Variable costs $237,000 146,000 $231,000 183,000 Contribution margin 91,000 $ 48,000 $ Fixed costs Operating profit 39.000 $52,000 32,000 $16.000 for the fixed costs The flexible budget will report $32,000 Favorable $32,000 $85,333 $7000 Unfavorable