Solo Company is a small merchandising firm. During the next month, the company expects to sell 500 units. The company has the following revenue and cost structure:

Selling price per unit.......................................$60
Cost per unit..................................................$15
Sales Commission..........................................10% of sales
Advertising expense.......................................$5000 per month
Administrative Expense..................................$3000 per month plus 20% sales

Answer the following questions:

1. What is the company's expected gross margin next month?

2. What is the company's expected contribution margin for next month?

3. ...expected net operating income is?