Kevin Couriers Company Prepared the Following Static Budget for the Year

Multiple Choice

Kevin Couriers Company prepared the following static budget for the year: $$\begin{array} { | l | r | r | } \hline \text { Static Budget } & & \\\hline \text { Units/Volume } & & 5,000 \\\hline \text { Sales Revenue } & \text { Per Unit } & \\\hline \text { Variable Costs } & \$ 7.00 & \$ 35,000 \\\hline \text { Contribution Margin } & 1.00 & \underline { 5,000 } \\\hline \text { Fixed Costs } & & 30,000 \\\hline \text { Operating Income/(Loss) } & & \$ , \$ 27,000 \\\hline\end{array}$$ If a flexible budget is prepared at a volume of 7,800,calculate the amount of operating income.The production level is within the relevant range.

A) $43,800
B) $27,000
C) $7,800
D) $3,000