Taylor Products Inc. has an $8000 favourable flexible budget variance for October. If October's flexible budget net income was $175 000, which of the following statements is true?

Taylor's static budget must have showed net income of $183 000.

Taylor's static budget must have showed net income of $167 000.

Taylor's actual net income must have been $183 000.

Taylor's actual net income must have been $167 000.