14-1

The Ace Company sells a single product at a budgeted selling price per unit of $75. Budgeted fixed manufacturing costs for the coming period are $25,000, while budgeted fixed marketing expenses for the period are $31,500. Budgeted variable costs per unit include $17 of selling expenses (commission) and $19 of manufacturing costs. What is the budgeted operating income if the anticipated sales volume for the period is (1) 11,500 units, and (2) 16,500 units?