The Current Annual Budget for Armstrong Ltd

The current annual budget for Armstrong Ltd. indicates total revenue of $8,000,000. The total variable costs are $1,600,000 and fixed costs are $5,600,000. Calculate the net income if total revenue for the year exceeds the budget by $1,000,000.

A) $2,400,000
B) $2,200,000
C) $2,000,000
D) $1,800,000
E) $1,600,000