Krazy Kayaks Sells Its Entry-Level Kayaks for $650 Each

Multiple Choice

Krazy Kayaks sells its entry-level kayaks for $650 each. Its variable cost is $300 per kayak. Fixed costs are $21,000 per month for volumes up to 1700 kayaks. Above 1700 kayaks, monthly fixed costs are $60,000. What is the budgeted operating income at a level of 400 kayaks per month?

A) $119,000
B) $140,000
C) $239,000
D) $80,000