Pallen company estimated sales of 11000 units at 40 each


Question - Pallen Company estimated sales of 11,000 units at $40 each, unit cost of goods sold of $22, marketing expense of $65,000 and a 10% commission on each unit sold. Administrative expense is budgeted at $50,000. What is Pallen's budgeted operating income?

a. $83,000

b. $440,000

c. $281,000

d. $198,000

e. $39,000

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