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Buffo Company fabricates metal folding chairs. Data concerning the company's revenue and cost structure follow: Selling price per unit $35 Manufacturing cost $4,000 per month

Buffo Company fabricates metal folding chairs. Data concerning the company's revenue and cost structure follow:

Selling price per unit

$35

Manufacturing cost

$4,000 per month plus $17 per unit

Administrative expense

$2,500 per month plus $2.50 per unit

Sales commissions

15% of sales

Advertising expense

$2,000 per month

If Buffo expects to produce and sell 2,000 units next month, compute the total expected manufacturing cost.

If Buffo expects to produce and sell 5,000 units next month, compute the expected net operating income.

If Buffo plans to produce and sell 4,000 units next month, compute the expected gross margin/profit.

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