Burruss Company developed a static budget at the beginning of the company's accounting period based on an expected volume of 6,000 units:

	Per Unit
Revenue	$	6.00
Variable costs		2.00
Contribution margin	$	4.00
Fixed costs		2.00
Net income	$	2.00

If actual production totals 7,000 units, which is within the relevant range, the flexible budget would show fixed costs of:

Multiple Choice

• $12,000.

• $2 per unit.

• $14,000.

• None of these answers are correct.