Product A has a sales price of $10 per unit. Based on a 10,000-unit production level, the

Question:

Product A has a sales price of $10 per unit. Based on a 10,000-unit production level, the variable costs are $6 per unit and the fixed costs are $3 per unit. Using a flexible budget for 12,500 units, what is the budgeted operating income from Product A?
A) $12,500.
B) $25,000.
C) $20,000.
D) $30,000.
E) $35,000.