Managerial Accounting

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Frog & Pond: Forecast Profits Next Period Using This Period


Last month's activity for Frog & Pond Inc. shows:

Last Month's Activity:
Sales (6,200 units) \$43,400
Variable expenses \$28,210
Contribution margin \$15,190
Fixed expenses \$10,000
Operating income \$5,190

If you expect to sell 7,200 units next month, what is the projected operating income?