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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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