Given the facts in part 3-8, if total fixed costs (excluding shipping) are $3,000 per month, estimate operating income for August if seven air conditioners are produced and sold.

Phillips Company manufactures air-conditioning units for commercial buildings and has noticed considerable variation in shipping expenses from month to month as per the data below:

Data from in part 3-8.

If the air conditioners have an average sales price of $5,000, variable manufacturing costs are $2,500 per unit, variable manufacturing overhead is $500 per unit, and variable selling and administration costs (excluding shipping) are $200 per unit, what is the contribution margin per unit?

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Month January February March April May June July Units Shipped 4452366 2 Total Shipping Expense $2,200 $3,100 $2,600 $1,500 $2,200 $3.000 $3,600