Hi,

Could you help me how to solve this problem? Thank you so much!

5.Julia Industries produces cookware.The master budget called for production of 75,000 units this year.The budget at that level of production follows:Master Budget Production75,000

Sales$1,200,000

Direct materials$300,000

Direct labor$150,000

Variable factory overhead$225,000

Fixed factory overhead$262,500

Fixed selling and administrative expense$112,500Operating income$150,000

Due to the popularity of cooking shows on television, Julia Industries now estimates sales will be 80,000 units.What is budgeted operating income at this level?