Bonita Sports sells volleyball kits that it purchases from a sports equipment distributor. The following static...

Bonita Sports sells volleyball kits that it purchases from a sports equipment distributor. The following static budget based on sales of 800 kits was prepared for the year. Fixed operating expenses account for 32% of total operating expenses at this level of sales.

Sales	$	40,000
Cost of goods sold (all variable)		24,000
Gross margin		16,000
Operating expenses		14,000
Operating income	$	2,000

Assume that Bonita Sports actually sold 840 volleyball kits during the year at a price of $49 per kit.

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