The Sunland Company sells sports decals that can be personalized with a players name, a team name, and a jersey number for $8.00 each. Sunland buys the decals from a supplier for $2.50 each and spends an additional $0.60 in variable operating costs per decal. The results of last months operations are as follows:

Sales revenue		$16,000
Cost of goods sold		5,000
Gross profit		11,000
Operating expenses		5,000
Operating income		$6,000