E$15-22.$ Preparing a Profit Equation to Predict Future Profits

Picnic Time produces a picnic basket that is sold for $$100$ per unit. Assume the company produced and sold $4,000$ baskets during July. There were no beginning or ending inventories. Variable and fixed costs follow.

$\backslash$table$[[$Variable Cost per Unit,Fixed Costs per Month$],[$Manufacturing:$,,,$Manufacturing overhead.,$ $36,000],[$Direct materials.,$$25,,$Selling and administrative,$68,000],[$Direct labor Manufacturing overhead,$15$

$5,$$$45,$Total,$$104,000],[$Selling and administrative.,,$4,,],[$Total$,,$$$49,,]]$

REQUIRED

a$.$ Prepare a monthly profit equation.

b$.$ Determine profit for the month of July using the equation from part $a.$

c$.$For august, the company estimates that slaes will range between $4,100$ on the low$-$end and $4,400$ on the high$-$end. What is the range of predicted profits?