Speedy bikes couriers company prepared the following static budget for the year: static budget units/volume 5,000 per unit sales revenue $7.00 $35,000 variable costs 1.50 7,500 contribution margin 27,500 fixed costs 4,000 operating income/(loss) $23,500 if a flexible budget is prepared at a volume of 8,400, calculate the amount of operating income. the production level is within the relevant range.
a) $23,500
b) $12,600
c) $42,200
d) $4,000