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. At a volume of 600,000 diapers per month, what operating income would be shown in the flexible budget?

A) $7,500
B) $45,000
C) $30,000
D) $15,000