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What would be the operating income

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Reference no: EM131781126

Avila Promotions, Inc. sells T-shirts decorated for a variety of concert performers. The company has developed the following budget for the coming year based on a sales forecast of 80,000 T-shirts:

Sales

$1,200,000

Cost of Goods Sold

   720,000

Gross Profit

  480,000

Operating Expenses ($180,000 is fixed)

   316,000

Operating Income

164,000

Cost of goods sold and variable operating expenses vary directly with sales.

What would be the operating income if actual sales are 60,000 T-shirts?

Reference no: EM131781126

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