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: If actual production totals 10,000 units which is within the relevant range, the flexible budget would show fixed costs of:
$$\begin{array} { | l | r | } \hline & \text { Per unit } \\\hline \text { Revenue } & \$ 4.00 \\\hline \text { Variable costs } & 1.50 \\\hline \text { Contribution margin } & \$ 2.50 \\\hline \text { Fixed costs } & 2.00 \\\hline \text { Net income } & \underline { \$ 0.50 } \\\hline & \\\hline\end{array}$$

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