Question - National's cost accountant prepared the following static budget based on expected activity of 1,000 units for the 2009 accounting period:
Sales Revenue $50,000
Variable Costs (30,000)
Contribution Margin 20,000
Fixed Costs (8,000)
Net Income $12,000
If National actually produced 2,000 units, the flexible budget would show fixed costs amounting to
a. $8,000.
b. $16,000.
c. $18,000.
d. none of the above.