Question: blake lake is preparing the operating budget for the first month of 2024. They forecast sales of $90,000 in January. Cost of goods sold is

blake lake is preparing the operating budget for the first month of 2024. They forecast sales of $90,000 in January. Cost of goods sold is budgeted at 45% of Sales. Variable and fixed expenses are as follows:

Variable:

Miscellaneous expenses : 10% of Sales

Fixed:

Salary expense: $22,000 per month

Rent expense: $8,000 per month

Depreciation expense: $2,000 per month

Miscellaneous expenses/fixed portion: $1,000 per month.

What is the budgeted operating Profit/(Loss) for January?

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