Based on a predicted level of production and sales of 15,000 units, a company anticipates reporting operating income of $22,000 after deducting variable costs of $90,000 and fixed costs of $8,000. Based on this information, the budgeted amounts of fixed and variable costs for 18,000 units would be:

Multiple Choice

a. $9,600 of fixed costs and $90,000 of variable costs.

b. $8,000 of fixed costs and $102,000 of variable costs.

c. $9,600 of fixed costs and $108,000 of variable costs.

d. $8,000 of fixed costs and $108,000 of variable costs.

e. $8,000 of fixed costs and $90,000 of variable costs.