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Jones Company Developed the Following Static Budget at the Beginning

Question 111

Multiple Choice

Jones Company developed the following static budget at the beginning of the company's accounting period:  Revenue ( 8,100 units)  $16,200 Variable costs 4,050 Contribution margin $12,150 Fixed costs 4,050 Net income $8,100\begin{array}{lr}\text { Revenue ( } 8,100 \text { units) } & \$ 16,200 \\\text { Variable costs } & \underline{ 4,050} \\\text { Contribution margin } & \$ 12,150 \\\text { Fixed costs } & \underline{4,050 }\\\text { Net income } & \underline{\$ 8,100}\end{array}
If actual production totals 8,500 units, the flexible budget would show total costs of:


A) $4,250.
B) $8,300.
C) $4,150.
D) None of these is correct.

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