Amanda Manufacturing Company prepared the following static budget income statement:

Revenues	$	452,250
Variable Costs		(317,250	)
Contribution Margin		135,000
Fixed Costs		(64,000	)
Net Income	$	71,000

The budgeted costs were based on a planned sales volume of 13,500 units. Actual production was 7,700 units. The amount of net income based on a flexible budget of 7,700 units would have been? Please show your work.

Multiple Choice

• $5,300.

• $7,300.

• $13,000.

• $253,250.