Brandon, Inc. sells Unity Candles for $140 each. Operating results for October, November, and December of 2022 are as follows: October November December Sales $21,000 $28,000 $35,000 COGS (6,000) (8,000) (10,000) Gross margin 15,000 20,000 25,000 Selling expense (1,100) (1,310) (1,500) Salaries (4,000) (4,000) (4,000) General admin. (1,400) (1,440) (1,500) Operating income $8,500 $13,250 $18,000 If Brandon, Inc. can sell 300 candles in January 2023, how much operating income should it have that month?
Brandon, Inc. sells Unity Candles for $140 each. Operating results for October, November, and December of 2022 are as follows: October November December Sales $21,000 $28,000 $35,000 COGS (6,000) (8,000) (10,000) Gross margin 15,000 20,000 25,000 Selling expense (1,100) (1,310) (1,500) Salaries (4,000) (4,000) (4,000) General admin. (1,400) (1,440) (1,500) Operating income $8,500 $13,250 $18,000 If Brandon, Inc. can sell 300 candles in January 2023, how much operating income should it have that month?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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- Brandon, Inc. sells Unity Candles for $140 each. Operating results for October, November, and December of 2022 are as follows:
|
|
|
|
October |
November |
December |
|
|
Sales |
|
$21,000 |
$28,000 |
$35,000 |
|
|
COGS |
|
(6,000) |
(8,000) |
(10,000) |
|
|
Gross margin |
|
15,000 |
20,000 |
25,000 |
|
|
Selling expense |
|
(1,100) |
(1,310) |
(1,500) |
|
|
Salaries |
|
(4,000) |
(4,000) |
(4,000) |
|
|
General admin. |
|
(1,400) |
(1,440) |
(1,500) |
|
|
Operating income |
|
$8,500 |
$13,250 |
$18,000 |
If Brandon, Inc. can sell 300 candles in January 2023, how much operating income should it have that month?
Expert Solution
Step 1
Operating Income:
The income that any business organization generates from the normal operations of the business is recorded as the operating income and must be disclosed in the income statement of the relevant accounting period.
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