ABC Company prepared the following static budget for the year 2015:

If a flexible budget was prepared at a volume of 7,000, calculate the amount of operating income.

A) $3,500

B) $10,500

C) $6,500

D) $4,000

Static Budget Units/volume Sales revenue Variable expenses Contribution margin Fixed expenses Operating income/(loss) Per Unit $3.00 $1.50 5,000 $15,000 7,500 7,500 4,000 $3,500