Burruss Company Developed a Static Budget at the Beginning of the Company's

Multiple Choice

Burruss Company developed a static budget at the beginning of the company's accounting period based on an expected volume of 8,000 units: $$\begin{array} { l c } & \text { Per Unit } \\\text { Revenue } & \$ 4.00 \\\text { Variable costs } & \underline{1.50} \\\text { Contribution margin } & \$ 2.50 \\\text { Fixed costs } & \underline{ 2.00} \\\text { Net incone } & \underline{\$ 0.50 }\\\end{array}$$ If actual production totals 10,000 units,which is within the relevant range,the flexible budget would show fixed costs of:

A) $16,000.
B) $2 per unit.
C) $20,000.
D) None of these answers are correct.