Speedy Bikes Couriers Company Prepared the Following Static Budget for the Year

Multiple Choice

Speedy Bikes Couriers Company prepared the following static budget for the year: $$\begin{array} { | l | r | r | } \hline \text { Static Budget } & & \\\hline \text { Units/Volume } & & 5,000 \\\hline& \text { Per Unit } \\\hline \text { Sales Revenue } &\$ 7.00 & \$ 35,000 \\\hline \text { Variable Costs } & 1.50 & \underline { 7,500 } \\\hline \text { Contribution Margin } && 27,500\\\hline \text { Fixed Costs } & & \underline { 4,000 } \\\hline \text { Operating Income/(Loss) } && \underline {23,500} \\\hline\end{array}$$ If a flexible budget is prepared at a volume of 8,400,calculate the amount of operating income.The production level is within the relevant range.

A) $23,500
B) $12,600
C) $42,200
D) $4,000