The Thunder Bay Company is interested in preparing a Master Flexible Budget for January. The following budgeted data are available for the month:

Sales in units 9,000

Sales in dollars $450,000

Direct materials 90,000

Direct labour 135,000

\Variable Manufacturing Overhead 72,000

Variable Selling and Administrative 18,000

Fixed Manufacturing Overhead 45,000

Fixed Selling and Administrative 27,000

If 8400 units instead of 9000 were sold during the month, then expected operating income for the month would be:

Cable Company had the following results for the year just ended:

Net operating income ...... $2,500

Turnover .................. 4

Return on investment ...... 20%

Cable Company's average operating assets during the year were:

		50,000
		200,000
		12,500
		10,000