Question
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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