The Management of Toro Corporation Expects Sales in August to Be

question 150

Essay

The management of Toro Corporation expects sales in August to be $130,000. The company's contribution margin ratio is 65% and its fixed monthly costs are $54,000.
Required:
Estimate the company's operating profit for August, assuming that the fixed monthly costs do not change.

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Definitions:

Obsessive-Compulsive Personality Disorder

Pervasive rigidity in one’s activities and interpersonal relationships; includes qualities such as emotional constriction, extreme perfectionism, and anxiety resulting from even slight disruptions in one’s routine.

Workaholics

Individuals who have a compulsion to work excessively and have difficulty disconnecting from their work.

Leisure Activities

Activities undertaken for enjoyment, relaxation, or pleasure during one's free time.

Avoidant Personality Disorder

A mental health disorder characterized by a pervasive pattern of social inhibition, feelings of inadequacy, and hypersensitivity to negative evaluation.