Material purchases budget Gap'O has projected sales of 130,000 hospital gowns in October. Each gown requires 2.5 yards of fabric. The beginning inventory of fabric and gowns, respectively, are 2,000 yards and 8,400 gowns. Gap'O wants to have 1,820 yards of fabric and 6,320 gowns on hand at the end of October. The fabric comes in 15-yard bolts. If Gap'O has no beginning or ending Work in Process Inventory, how many bolts of fabric must the company purchase in October? October purchase: 0 bolts Budgeted income statement The operating results in summarized form for a retail computer store for this year are: Revenue: Hardware sales Software sales Maintenance contracts Total revenue $10.560,000 4.400,000 2,640,000 $17,600,000 Costs and expenses Cost of hardware sales $7,392,000 Cost of software sales 2,640,000 Marketing expenses 1,320,000 Customer maintenance costs 1,408,000 Administrative expenses 2,464,000 Total costs and expenses $15,224,000 $2,376,000 13 Operating income The computer store is in the process of formulating its operating budget for next year and has made the following assumptions: The selling prices of hardware are expected to increase 10 percent but there will be no selling price Increases for software and maintenance contracts. Hardware unit sales are expected to increase 5 percent with a corresponding 5 percent growth in the number of maintenance contracts; growth in unit software sales is estimated at 8 percent. The cost of hardware and software is expected to increase 4 percent. Marketing expenses will be increased 5 percent in the coming year. Three technicians will be added to the customer maintenance operations in the coming year, increasing the customer maintenance costs by $264,000. Administrative costs will be held at the same level. Three technicians will be added to the customer maintenance operations in the coming year, increasing th Administrative costs will be held at the same level. Compute the computer retail store's budgeted operating income for next year. $0