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Assume a company sells 500 units for $20 each. Their direct material costs total $3,000. Their direct labor and variable overhead total $2,000. Their sales
Assume a company sells 500 units for $20 each. Their direct material costs total $3,000. Their direct labor and variable overhead total $2,000. Their sales people earn a 20% commission on all sales. Sales commissions are the only variable selling, general or operating costs.The companys fixed costs consist of $1,000 in rent, $500 in salaries and $500 in advertising costs. Calculate the companys operating income. (Round your answer to the nearest whole dollar, do not include any symbols, nor letters in your answer)
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