Calculate the flexible budget would show fixed costs

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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.

Reference no: EM131736883

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