Rayburn Co. manufactures and sells glow in the dark phone cases. Terry Andreikowski, the president of the Rayburn Co., has a hard time understanding the accounting in his firm. Yesterday morning, he was very confused when he received mail from his accountant, Julia Omberg. She sent him the following income statements: FebrueryMarch s 25,000 37500 Sales revenue Cost of goods sold 10,000 1500 Gross profit Ront exponse Wages expense Shipping expense Utilities expense Advertising expense Insurance expense Operating income S 6850 S 12,100 1,500 1,500 1,875 750 875 1,250 400 Terry was somewhat frustrated and said "Last month, we sold 1,000 glow in the dark phone cases and earned $6,850 in operating income. This month, when we sold 1,500 cases, I thought we'd make $10,275. This income statement shows an operating income of $12,100! How can I ever make any plans when I can't even predict my income? This accounting non- sense is too confusing!I will give Julia one last chance to explain to me what's going on. "Can you please try to explain this operating income non-sense to me once more?" Terry asked Julia on the phone. Terry said "After I saw last month's income statement, I thought each glow in the dark case generated S6.85 in net income; now this month each one generates $8.07! No changes took place in the cost of each case, so why does this change in operating income h If I had known I was going to have a higher operating income,I would've looked more seriously at adding to our product line! After patiently listening to Terry's blab, and taking a deep breath, Julia answers: "Of course, Terry. Let me explain to you again how you made so much you were expecting." appen? more operating income than what