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: $\begin{array}{|l|r|}\hline & {\text { Per unit }} \\\hline \text { Revenue } & \$ 4.00 \\\hline \text { Vanable costs } & \underline { 1.50} \\\hline \text { Contribution margin } & \$ 2.50 \\\hline \text { Fixed costs } & \underline { 2.00 }\\\hline \text { Net income } & \underline { \$ 0.50} \\\hline & \\\hline\end{array}$ 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.