The Ace Company sells a single product, at a budgeted selling price per unit of $20. Budgeted fixed manufacturing costs for the coming period are $10,000, while budgeted fixed marketing expenses for the period are $24,000. Budgeted variable costs per unit include $2 of selling expenses (commission) and $4 of manufacturing costs. What is the budgeted operating income if the anticipated sales volume for the period is (a) 10,000 units, and (b) 15,000 units?
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