kafka Corporation is a wholesaler that sells a single product and maintains a stable cost...
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Accounting
kafka Corporation is a wholesaler that sells a single product and maintains a stable cost structure. However, the demand for their product fluctuates according to the season. Management has provided the following data for two months.
September October November
Net operating income (Loss) (43000) 47000
Selling price per unit 180 180
Sales units 4000 5000
Gross margin 307000 415000
If the sales in Novermber increases by 16% from October, the best estimate of the net operating income in november is
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