Suppose

Chef CityChef City

manufactures cast iron skillets. One model is a? 10-inch skillet that sells for

$ 25$25.

Chef CityChef City

projects sales of

650650

?10-inch skillets per month. The production costs are

$ 8$8

per skillet for direct? materials,

$ 4$4

per skillet for direct? labor, and

$ 1$1

per skillet for manufacturing overhead.

Chef CityChef City

has

4040

?10-inch skillets in inventory at the beginning of July but wants to have an ending inventory equal to

2525?%

of the next? month's sales. Selling and administrative expenses for this product line are

$ 1 comma 200$1,200

per month.

Chef CityChef City

has budgeted cost of goods sold of

$ 8 comma 450$8,450

for July.

Compute the budgeted gross profit for July.