Amanda Manufacturing Company prepared the following static budget income statement:

Revenues	$	172,250
Variable Costs		(107,250	)
Contribution Margin		65,000
Fixed Costs		(36,000	)
Net Income	$	29,000

The budgeted costs were based on a planned sales volume of 6,500 units. Actual production was 6,300 units. The amount of net income based on a flexible budget of 6,300 units would have been

Multiple Choice

• $20,700.

• $22,700.

• $27,000.

• $71,250.