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 Results Flexible Budget Static Budget Sales volume (in units) 19,000 18,000 Sales revenues $240,000 $ $233,000 Variable costs 141,000 183,000 Contribution margin 99,000 50,000 Fixed costs 41,000 34,000 Operating profit $58,000 $ $16,000 The flexible budget will report ________ for the fixed costs. Do not give answer in image formate
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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 Results | Flexible Budget | Static Budget | |
| Sales volume (in units) | 19,000 | 18,000 | |
| Sales revenues | $240,000 | $ | $233,000 |
| Variable costs | 141,000 | 183,000 | |
| Contribution margin | 99,000 | 50,000 | |
| Fixed costs | 41,000 | 34,000 | |
| Operating profit | $58,000 | $ | $16,000 |
The flexible budget will report ________ for the fixed costs.
Do not give answer in image formate
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