Graham Corporation used the following data to evaluate its current operating system. The company sells items for $10 each and used a budgeted selling price of $10 per unit.

Actual: Budgeted:

Units sold 495,000 units. 500,000 units

Variable costs $1,250,000. $1,500,000

Fixed costs $925,000. $900,000

Calculate variable costs for the flexible budget ?

4 Points

• $1,485,000

• $1,500,000

• $1,250,000