Burruss Company developed a static budget at the beginning of the company's accounting period based on an expected volume of 7000 units: Per UnitRevenue$7.00? Variable costs 2.50? Contribution margin$4.50? Fixed costs 2.00? Net income$2.50? If actual production totals 8000 units which is within the relevant range, the flexible budget would show fixed costs of:
A. $2 per unit.
B. $16,000.
C. $14,000.
D. None of these answers is correct.
Answer: C
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