Hathaway Inc. produces and sells golf umbrellas to local resorts. Hathaway anticipates April to be a busy month with the sale of 1000 umbrellas. The company has prepared the following static budget for April:

Sales revenue (1000 units) $40 000

Variable costs:

Direct materials 5000

Direct labour 6000

Overhead 1500

Fixed costs 4000

Net income $23 500

During April, Hathaway actually produced and sold 1200 umbrellas. What should be Hathaways net income in April based on a flexible budget?

A. $31 500

B. $29 300

C. $29 000

D. $28 200

PLEASE EXPLAIN WHY YOU CHOSE THIS ANSWER