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: $$\begin{array} { | l | c | r | } \hline \text { Static Budget } & & \\\hline \text { Units/Volume } & &6,000 \\\hline & \text { Per Unit } & \\\hline\text { Sales Revenue } & \$ 7.00 & \$ 42,000 \\\hline \text { Variable Costs } & 1.50 & \underline {9,000 } \\\hline \text { Contribution Margin } & &33,000 \\\hline \text { Fixed Costs } & & \underline { 3,000 } \\\hline\text { Operating Income/(Loss) } & & \$ 30, 000 \\\hline \end{array}$$ If a flexible budget is prepared at a volume of 8,700,calculate the amount of operating income.The production level is within the relevant range.

A) $30,000
B) $13,050
C) $44,850
D) $3,000