Burruss Company developed a static budget at the beginning of the company's accounting period based on an expected volume of 5,000 units: Per Unit Revenue $ 5.00 Variable costs 2.00 Contribution margin $ 3.00 Fixed costs 2.00 Net income $ 1.00 If actual production totals 6,000 units which is within the relevant range, the flexible budget would show fixed costs of:

• $10,000.

• $2 per unit.

• $12,000.

• None of these answers is correct.