The following information pertains to the month of August. As part of the budgeting process, Shelley Company developed the following static budget for August. Shelley Company is in the process of preparing the flexible budget and understanding the results. Flexible Budget Sales volume (in units) Sales revenues Variable costs Contribution margin Fixed costs Operating profit Actual Results 50,000 $1,000,000 780,000 220,000 158.000 $ 62,000 Static Budget 60,000 $1,200,000 900.000 300,000 150.000 $ 150,000 for variable costs The flexible budget will report O $900.000 $750,000 O $1,050.000 O $780,000 $480,000