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. ActualResults FlexibleBudget StaticBudget Sales volume (in units) 20,000 19,000 Sales revenues $235,000 24 $230,000 Variable costs 154,000 24 185,000 Contribution margin $81,000 2$ $45,000 Fixed costs 37,000 2$ 35,000 Operating profit $44,000 2$ $10,000 The flexible budget will report for variable costs. O A. $146,300 OB. $185,000 OC. $31,000 O D. $194,737

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. ActualResults FlexibleBudget StaticBudget Sales volume (in units) 20,000 19,000 Sales revenues $235,000 24 $230,000 Variable costs 154,000 24 185,000 Contribution margin $81,000 2$ $45,000 Fixed costs 37,000 2$ 35,000 Operating profit $44,000 2$ $10,000 The flexible budget will report for variable costs. O A. $146,300 OB. $185,000 OC. $31,000 O D. $194,737

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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In your report to the CEO, you are to provide the following:A flexible budget based on the actual volume that was sold last year for both leather and vegan-polymer purses;