Samsung Corporation had a static budget at the beginning of the company's accounting period based on an expected volume of 5,000 units:

	Per Unit
Revenue	$	5.00
Variable costs		1.50
Contribution margin	$	3.50
Fixed costs		2.00
Net income	$	1.50

If actual production totals 6,000 units which is within the relevant range, the flexible budget would show fixed costs of:

A. $10,000.

B. $2 per unit.

C. $12,000.

D. None of these answers is correct.