Burruss Company developed a static budget at the beginning of the company's accounting period based on an expected volume of 8,000 units:

	Per Unit
Revenue	$	4.00
Variable costs		1.50
Contribution margin	$	2.50
Fixed costs		2.00
Net income	$	0.50

If actual production totals 10,000 units, which is within the relevant range, the flexible budget would show fixed costs of:

A) $16,000.

B) $2 per unit.

C) $20,000.

D) None of these answers are correct.

will budgeted net income equal if 21,000 units are produced and sold? (Do not round intermediate calculations.)

A) $53,550

B) $55,500

C) $94,500

D) $210,000