Butler Company developed a static budget at the beginning of the company's accounting period based on an expected volume of 4,000 units:

Per unit
Revenue	$8.00
Variable costs	3.50
Contribution margin	$4.50
Fixed costs	3.00
Net income	$1.50

If actual production totals 5,000 units which is within the relevant range, the flexible budget would show fixed costs of:

$15,000.

$3 per unit.

$12,000.

None of these answers is correct