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Maxie Company is creating their budget for the following year. Here is their relevant information: Expected Sales 1,000 units per month Sales Price $15 per

Maxie Company is creating their budget for the following year. Here is their relevant information:

Expected Sales 1,000 units per month

Sales Price $15 per unit

Variable Labor costs $3 per unit

Variable Material costs $2 per unit

Fixed Costs $6,000 per month

In the first month of the new year, Maxie Company only produced and sold 800 units. What is their flexible budget operating income?

a) $4,000

b) $0

c) $8,000

d) $2,000

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