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 13,000 Sales revenues $236,000 $ $234,000 Variable costs 166,000 $ ________ 182,000 Contribution margin 70,000 $ 52,000 Fixed costs 41,000 $ ________ 31,000 Operating profit $29,000 $ $21,000 The flexible budget will report ________ for the fixed costs.

		$31,000 Favorable
		$73,923
		$10,000 Unfavorable
		$31,000