The C.M.S. Corporation sells review books to accounting students. The company noticed a decline NET OPERATING in sales for the months of May, June, and July, presumably due to the reduced number of students PROFIT attending the summer session.

The variable costs to produce each book are as follows: ki4

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Direct materials. $2.00 Direct labor.. 1.00 Variable overhead.. 1.00 Total... $4.00 Fixed factory overhead is $12,000 per year; fixed selling and administrative expenses are $6,000 per year. The selling price per book is $5. Actual data relating to inventories and sales are as follows: Quantity May June July Inventory (beginning) 0 1,000 3,000 Books produced 5,000 4,000 2,000 Books sold 4,000 2,000 1,000 1,000 3,000 4,000 Inventory (ending) Required: Find the net operating profit for May, June, and July, using direct costing.