Sweet Baby Diaper Company Sells Disposable Diapers for

Sweet Baby Diaper Company sells disposable diapers for $.20 each. Variable costs are $.05 per diaper, while fixed costs are $75,000 per month for volumes up to 850,000 diapers and $112,500 for volumes above 850,000 diapers. The flexible budget would reflect monthly operating income for 800,000 diapers and 900,000 diapers of what dollar amounts?

A) $7,500 and $60,000, respectively
B) $60,000 and $45,000, respectively
C) $45,000 and $22,500, respectively
D) $22,500 and $7,500, respectively