Buffo Company fabricates metal folding chairs. Data concerning the company\'s re

Question

Buffo Company fabricates metal folding chairs. Data concerning the company's revenue and cost structure follow:
Selling price per unit
$37
Manufacturing cost
$3,900 per month plus $16 per unit
Administrative expense
$2,070 per month plus $1.8 per unit
Sales commissions
16% of sales
Advertising expense
$8,460 per month


1. If Buffo expects to produce and sell 6,000 units next month, the expected net operating income would be:

2. If Buffo expects to produce and sell 3,100 units next month, the total expected manufacturing cost would be:

Explanation / Answer

1. 65,250$ 2. 3900 + 16*3100 =53500$

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