=+$624,000 $1,824,000 $2,448,000 ___________ Expenses:

Variable:

8,000 units @ $ 58 per unit $464,000 $ 464,000 12,000 units @ $108* per unit $1,296,000 1,296,000 Fixed 124,000 288,000 412,000 _________ ___________ ____________ Total expenses $588,000 $1,584,000 $2,172,000 _________ __________ ___________ Income from operations $ 36,000 $ 240,000 $ 276,000 _________ __________ _ _________ __________ ___________ __________

*$78 of the $108 per unit represents materials costs, and the remaining $30 per unit represents other variable conversion expenses incurred within the Communication Technologies Division.