Based on a predicted level of production and sales of 16,000 units, a company anticipates total variable costs of $78,400, fixed costs of $27,200, and operating income of $94,080. Based on this information, the budgeted amount of operating income for 13,000 units would be:

Multiple Choice

• $7,060.

• $98,540.

• $162,240.

• $71,340.

• $63,700.