The Robinson Company sells sports decals that can be personalized with a player”s name, a team name, and a jersey number for $5 each. Robinson buys the decals from a supplier for $1.50 each and spends an additional $0.50 in variable operating costs per decal. The results of last month”s operations are as follows:
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| Cost of goods sold | 3,000 |
| Gross profit | 7,000 |
| Operating expenses | 2,500 |
| Operating income | $ 4,500 |
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