Robeson Company estimates it will produce and sell 3,000 units next month. Data on costs follows:
Per unit costs:
Selling price……………………………………………………
$11.00
Variable manufacturing costs…………………………………
$5.75
Variable selling costs………………………………………….
$0.25
Total costs:
Fixed manufacturing costs………………………………….......
$4,500
Fixed selling costs……………………………………………...
$ 500
REQUIRED:
iii. What is the expected operating income for next month?
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