Colorful Paint Company is preparing a flexible budget for the month of September, using a contribution margin format. Staff have completed the budget if 12,000 units of product are produced and sold. You must complete the budget if 16,000 units of product are produced and sold.

The following information is given:

For Sales of 12,000 units:

• Sales = $48,000
• Variable costs = $18,000

Fixed costs are $16,000 for any level of sales.

If the company sells 16,000 units, what is the budget's Fixed Costs amount (for 16,000 units)?