The actual information pertains to the month of September. As a part of the budgeting process, Twilith Fencing Company developed the following static budget for September. Twilith is in the process of preparing the flexible budget and understanding the results.

ActualFlexibleStatic

ResultsBudgetBudget

Sales volume (in units)12,00015,000

Sales revenues$600,000$$750,000

Variable costs307,200$ ________360,000

Contribution margin292,800$ _______390,000

Fixed costs274,800$ ________270,000

Operating profit$ 18,000$_$ 120,000

Flexible budget will report ________ for fixed costs.

Question options:

$343,500

$216,000

$270,000

$274,800