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A merchandiser plans to sell 13,200 units next month at a selling price of $110 per unit. It also gathered the following cost estimates for
A merchandiser plans to sell 13,200 units next month at a selling price of $110 per unit. It also gathered the following cost estimates for next month:
Cost | Cost Formula |
Cost of goods sold | $60 per unit sold |
Advertising expense | $150,000 per month |
Depreciation expense | $70,000 per month |
Shipping expense | $100,000 per month + $10 per unit sold |
Administrative salaries | $50,000 per month |
Sales commissions | 5% of sales |
Insurance expense | $15,000 per month |
What is the estimated net operating income for next month?
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