A company is in the process of preparing its selling and administrative budget for next year. Variable selling and administrative expenses are budgeted at $$3\mathrm{.}50$ per unit sold. Monthly fixed selling and administrative expenses include $$10,000$ for advertising. $$20,000$ for salaries: $$5,000$ for depreciation; and $$3,000$ for insurance. In addition, the company needs to pay $$4,000$ in property taxes in February and plans on purchasing two new computers in January for $$2,500$ and one in March for $$1,250.$ The company has budgeted $15,000,14,000,$ and $13,000$ units to be sold in January.

February, and March, respectively.

What is the March budgeted cash outflow for selling and administrative expenses?

$$ $$78,500$

$$ $$79,750$

$$ $$83,500$

$$ $$83,500$

Estimated costs for a company to produce an item include $$7$ per unit for materials, $$6$ per unit for labor, and $$3$ per unit for variable overhead. The company had projected sales of $$8$ million, and the selling price per unit was $$38\mathrm{.}10.$ Selling and administrative expenses were $$2$ million. Fixed overhead was $$840,000.$ There was no beginning or ending inventory.

How much budgeted net income did the company make, rounded to the nearest hundred thousand?

$$ $$3\mathrm{.}8$ million

$$ $$2\mathrm{.}6$ million

$$ $$2\mathrm{.}0$ million

$$ $$1\mathrm{.}8$ million