Krazy Kayaks Sells Its Entry-Level Kayaks for $750 Each

Multiple Choice

Krazy Kayaks sells its entry-level kayaks for $750 each. Its variable cost is $500 per kayak. Fixed costs are $25,000 per month for volumes up to 1100 kayaks. Above 1100 kayaks, monthly fixed costs are $60,000. What is the budgeted operating income at a level of 2500 kayaks per month?

A) $625,000
B) $1,815,000
C) $565,000
D) $600,000