udgeted Operating Profit (30 points) 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 Dec- is in the process of preparing the flexible budget and understanding the results. Actual Flexible Static Results 11,000 Budget Budget 12,000 Sales volume (in units) Sales revenues Variable costs $242,000 $ $240,000 180,000 198,000 60,000 44,000 Contribution margin 45.000 40,000 Fixed costs $ 15,000 $ $4,000 Operating profit Complete the flexible budget. Calculate the static budget variance, flexible budget variance and the sales volume variance. What is the primary reason for the flexible budget variance? a. b