Phillips Company manufactures air-conditioning units for commercial buildings and has noticed considerable variation in shipping expenses from month to month as per the data below:

Given the facts in part 3-8, if total fixed costs (excluding shipping) are $3,000 per month, estimate operating income for August if seven air conditioners are produced and sold.

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Total Shipping Expense Units Shipped Month January... February. $2,200 $3,100 4 4 $2,600 $1,500 $2,200 March.... April.. May June $3,000 $3,600 July.... 8.