What was the budgeted operating income for the current year?How do I calculate with this info?

Lara Burrardi is the CEO of Linton Techniques Inc. (LTI).The company manufactures two products, the basic gadget and the deluxe gadget.He has just received the latest industry statistics, which indicate that industry sales for gadgets were 10% higher than the company had forecast when developing this year's budget.The industry numbers were a pleasant surprise for Lara. "If we maintain our market share, then I suspect we will have had a good year, surpassing our expectations."

LTI anticipated combined sales volume of 60,000 units, for the basic gadget and the deluxe gadget, when it developed the current year budget. The basic gadget had typically accounted for 80% of the company's sales in the past and Lara had used that percentage in calculating the current year's budget, although he was hopeful that the deluxe gadget's proportion would grow.

In the budget, the basic gadget had a unit selling price of $40.00. Variable manufacturing costs were budgeted at $22.50 per unit. The only variable operating cost was a commission of 10% of the unit selling price that was paid to the sales representatives.The deluxe gadget included some premium features that allowed the company to sell the unit for $70.00. The variable manufacturing costs were 20% higher than the basic gadget and the sales commission remained at 10% of the unit selling price.The market for the basic gadget turned out to be very competitive. The sales manager lowered the unit selling price so that the average selling price for the year was $38.00.Revenue for the basic gadget totaled $1,732,800. Variable manufacturing costs were slightly higher than expected and averaged $23.00 per unit.

To stimulate sales of the deluxe gadget, LTI dropped the selling price by $2.00 per unit. The price decline resulted in a 7% increase in sales volume over the budget.Variable manufacturing costs remained close to budget throughout the entire year.

LTI is now finalizing the financial statements for the year.Based upon the information presented above, Lara has asked you to do an analysis of LTI's profitability for the year.In addition to the information already provided, Lara mentioned that fixed manufacturing overhead costs of $ 500,000 were $100,000 less than anticipated in the budget. Fixed operating expenses of $200,000 were exactly on budget. The company does not allocate fixed costs between products as any allocation would be meaningless. Anticipated industry volume was 300,000 units per year.