A company predicts its production and sales will be 24,000 units. At that level of activity, its fixed costs are budgeted at $300,000, and its variable costs are budgeted at $246,000. If its activity level declines to 20,000 units, what will be its fixed costs and its variable costs?

a. Fixed, $300,000; variable, $246,000

b. Fixed, $250,000; variable, $205,000

c. Fixed, $300,000; variable, $205,000

d. Fixed, $250,000; variable, $246,000

e. Fixed, $300,000; variable, $300,000