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Hathaway Inc. produces and sells golf umbrella to local resorts. Hathaway anticipates April to be a busy month with the sale of 2,000 umbrellas. Each umbrella has variable costs as follows: direct materials$3 per umbrella, direct labor$4 per umbrella and overhead of $1.25 per umbrella. The company has prepared the following static budget for April: sales revenue (2,000 units) $60,000 variable costs: direct materials 6,000 direct labor 8,000 overhead 2,500 fixed costs 6,000 net operating income $37,500. During April, Hathaway actually produced and sold 2,300 umbrellas. What should be hathaway's net operating income in April based on a flexible budget?
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