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. Sales volume (in units) Actual Results 10,000 Flexible Budget Static Budget Sales revenues Variable costs Contribution margin Fixed costs Operating profit $240,000 9,000 $234,000 148,000 185,000 92,000 49,000 36,000 31,000 $56,000 $ $18,000 The flexible budget will report. for the fixed costs. A. $31,000 Favorable B. $5,000 Unfavorable C. $106,778 D. $31,000 ...