Peddlin' Pete's Cycles Sells Its Entry-Level Bicycles for $400 Each

Multiple Choice

Peddlin' Pete's Cycles sells its entry-level bicycles for $400 each.Its variable cost is $250 per bicycle.Fixed costs are $35,000 per month for volumes up to 1,200 bicycles.Above 1,200 bicycles,monthly fixed costs are $55,000.What is the budgeted operating income at a level of 900 bicycles per month?

A) $100,000
B) $135,000
C) $325,000
D) $80,000