Sully Company provided the following information for last month.

Production in units	3,000
Direct materials cost	$7,000
Direct labor cost	$10,000
Overhead cost	$9,600
Sales commission per unit sold	$4
Price per unit sold	$29
Fixed selling and administrative expense	$7,000

There were no beginning and ending inventories. What is operating income for Sully Company for last month?

a.$27,400

b.$24,000

c.$41,400

d.$34,600

e.$49,400

Saphire Company budgeted the following production in units for the second quarter of the year:

April	45,000
May	38,000
June	42,000

Each unit requires four pounds of raw material. Saphire's policy is to have 30% of the following month's production needs for materials in inventory. This policy was met in March. Desired ending inventory for April in pounds equals:

a.11,400.

b.10,500.

c.54,000.

d.38,300.

e.45,600.