Question
Avila Promotions, Inc. sells T-shirts decorated for a variety of concert performers. The company has developed the following budget for the coming year based on
- Avila Promotions, Inc. sells T-shirts decorated for a variety of concert performers. The company has developed the following budget for the coming year based on a sales forecast of 80,000 T-shirts:
| Sales | $1,200,000 |
| Cost of Goods Sold | 720,000 |
| Gross Profit | 480,000 |
| Operating Expenses ($180,000 is fixed) | 316,000 |
| Operating Income | 164,000 |
Cost of goods sold and variable operating expenses vary directly with sales.
What would be the operating income if actual sales are 60,000 T-shirts? [Income]
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Accounting
Authors: Lew Edwards, John Medlin, Keryn Chalmers, Andreas Hellmann, Claire Beattie, Jodie Maxfield, John Hoggett
9th edition
1118608224, 1118608227, 730323994, 9780730323990, 730319172, 9780730319177, 978-1118608227
