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Question(s) / Instruction(s):

 Sweet Baby Diaper Company sells disposable diapers for $.20 each. Variable costs are $.05 per diaper, while fixed costs are $75,000 per month for volumes up to 850,000 diapers and $112,500 for volumes above 850,000 diapers. The flexible budget would reflect monthly operating income amount for 800,000 diapers and 900,000 diapers of respectively? 

A             $7,500 and $60,000

B             $60,000 and $45,000

C             $45,000 and $22,500

D             $22,500 and $7,500

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