Based on predicted production of 12,000 units, a company anticipates $150,000 of fixed costs and $123,000 of variable costs. The flexible budget amounts of fixed and variable costs for 10,000 units are:

Multiple Choice

• $125,000 fixed and $102,500 variable.

• $125,000 fixed and $123,000 variable.

• $102,500 fixed and $150,000 variable.

• $150,000 fixed and $123,000 variable.

• $150,000 fixed and $102,500 variable.