Burruss Company Developed a Static Budget at the Beginning of the Company's

Multiple Choice

Burruss Company developed a static budget at the beginning of the company's accounting period based on an expected volume of 8,000 units: $\begin{array}{lr}&\text { Per Unit }\\\text { Revenue } & \$ 4.00 \\\text { Variable costs } & \underline{ 1.50} \\\text { Contribution margin } & \$ 2.50 \\\text { Fixed costs }& \underline{ 2.00 }\\\text { Net income } & \underline{ \$ 0.50}\end{array}$ If actual production totals 10,000 units which is within the relevant range, the flexible budget would show fixed costs of:

A) $16,000.
B) $2 per unit.
C) $20,000.
D) None of these answers is correct.