1. 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 1300 umbrellas. What should be Hathaways net income in April based on a flexible budget?

   		$31 750
   		$31 500
   		$23 500
   		$35 500