Pixson Company has a relevant range of 6,000 to 12,000 units, and practices just in time inventory management so the number of units produced is equal to the number of units sold. The Pixson Company's budgeted income statement for 2014 follows:

Sales (8,000 units)

$128,000

Direct materials

27,600

Direct labor

6,000

Variable overhead

16,800

Fixed Overhead

15,000

Fixed selling & administrative expenses

30,000

Net Income

$32,600

A flexible budget for 12,000 units would show net income of:

? 1.

$71,400

? 2.

$96,600

? 3.

$74,100

? 4.

$48,900