Burruss Company developed a static budget at the beginning of the company's accounting period based on an expected volume of 8,000 units: $\begin{array}{lr}
&\text { Per Unit }\
\text { Revenue } & \$ 4.00 \
\text { Variable costs } & \underline{ 1.50} \
\text { Contribution margin } & \$ 2.50 \
\text { Fixed costs }& \underline{ 2.00 }\
\text { Net income } & \underline{ \$ 0.50}
\end{array}$ 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 is correct.

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The Answer of Burruss Company developed a static budget at the beginning of the company's accounting period based on an expected volume of 8,000 units: $\begin{array}{lr}
&\text { Per Unit }\
\text { Revenue } & \$ 4.00 \
\text { Variable costs } & \underline{ 1.50} \
\text { Contribution margin } & \$ 2.50 \
\text { Fixed costs }& \underline{ 2.00 }\
\text { Net income } & \underline{ \$ 0.50}
\end{array}$ 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 is correct.

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