ebook Prin Mark 5.00 out of 5.00 Flag question Preparing a Profit Equation to Predict Future Profits Picnic Time produces a picnic basket that is sold for $104 per unit. Assume the company produced and sold 4,000 baskets during July. There were no beginning or ending inventories. Variable and fixed costs follow. Variable Cost per Unit Fixed Costs per Month Manufacturing: Manufacturing overhead $36,000 Direct materials $26 Selling and administrative 70,000 Direct labor 16 Total $106,000 Manufacturing overhead 6 $48 Selling and administrative Total $52 REQUIRED a. Prepare a monthly profit equation. Profits = $ 104 V X- ($ 106,000 + $ 52 X ) where X = number of picnic baskets