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) 10,000 8,000

Sales revenues $239,000 $ $235,000

Variable costs 167,000 $ ________ 184,000

Contribution margin 72,000 $ 51,000

Fixed costs 38,000 $ ________ 33,000

Operating profit $34,000 $ $18,000