Trina makes handmade leis in Hawaii which she sells to local tourists. She anticipates August to be a busy month with the sale of 500 leis. She has prepared the following static budget for August:

Sales revenue (500 units) $5000

Variable costs:

Direct materials 1000

Direct labour 1000

Overhead 475

Fixed costs 200

Net income $2425

During August, Trina actually produced and sold 400 leis. What should be Trina's net income in August based on a flexible budget?

$2325

$1820

$1825

$1325