Jones Company Developed the Following Static Budget at the Beginning

Jones Company developed the following static budget at the beginning of the company's accounting period: $\begin{array}{lr}\text { Revenue ( } 8,000 \text { units) } & \$ 16,000 \\\text { Variable costs } & \underline{ 4,000} \\\text { Contribution margin } & \$ 12,00 \\\text { Fixed costs } & \underline{4,000 }\\\text { Net income } & \underline{\$ 8,000}\end{array}$

If actual production totals 8,200 units, the flexible budget would show total costs of:

A) $8,000.
B) $8,100.
C) $8,200.
D) None of these is correct.

Correct Answer:

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