Brodrick Company expects to produce 21,500 units for the year ending December 31. A flexible budget for 21,500 units of production reflects sales of $623,500; variable costs of $64,500; and fixed costs of $142,000.

If the company instead expects to produce and sell 27,700 units for the year, calculate the expected level of income from operations.

	------Flexible Budget------		------Flexible Budget at ------
	Variable Amount per Unit	Total Fixed Cost	21,500 units	27,700 units
Contribution margin