Ibis Paper Company Prepared the Following Static Budget for November

Multiple Choice

Ibis Paper Company prepared the following static budget for November: $$\begin{array} { | l | c | r | } \hline \text { Static Budget } & & \\\hline \text { Units/Volume } & & 12,000 \\\hline& \text { Per Unit } \\\hline \text { Sales Revenue } & \$ 21.00 & \$ 252,000 \\\hline \text { Variable Costs } & 8.00 & \underline { 96,000 } \\\hline \text { Contribution Margin } &&156,000 \\\hline \text { Fixed Costs } & & \underline { 13,500 }\\\hline \text { Operating Income/(Loss) } & & \underline { \$142,500 } \\\hline\end{array}$$
If a flexible budget is prepared at a volume of 14,500 units, calculate the operating income. The production level is within the relevant range.

A) $188,500
B) $156,000
C) $142,500
D) $175,000