Required:

$3$a$.$ Annie's labor cost is what percent of its gross sales?

$3$b$.$ If the industry benchmark says labor cost should be $30\%$ of gross sales, which of the following statements is true?

$4.$ What is the budgeted net operating income for May? $($Hint: Adjust May's net operating cash inflow $($outflow$)$ to account for the monthly depreciation expense. As a reminder, the company depreciates $$105,000$ of noncurrent assets over five years with no salvage value.$)$

Complete this question by entering your answers in the tabs below.

Required $3$a

Required $3$b

Required $4$

What is the budgeted net operating income for May? $($Hint: Adjust May's net operating cash inflow $($outflow$)$ to account for the monthly depreciation expense. As a reminder, the company depreciates $$105,000$ of noncurrent assets over five years with no salvage value.$)$

The budgeted net operating income is