Question

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Answer 1

Solution

Jay Corporation
Budgeted Income statement
For Year 3, Quarter 1
Sales		$    816,000.00
Variable expenses
Cost of goods sold	$    493,000.00
Sales commission	$       77,520.00
Total Variable expenses		$    570,520.00
Contribution margin		$    245,480.00
Fixed expenses
Administrative salaries	$       45,000.00
Rent expense	$       27,000.00
Depreciation expense	$       36,000.00
Total fixed expense		$    108,000.00
Net operating income		$    137,480.00

Working with formula

Jay Corporation
Budgeted Income statement
For Year 3, Quarter 1
Sales		=+B4*B5
Variable expenses
Cost of goods sold	=+B4*B8
Sales commission	=+D22*B9
Total Variable expenses		=+C24+C25*
Contribution margin		=+D22-D26
Fixed expenses
Administrative salaries	=+B11
Rent expense	=+B12
Depreciation expense	=+B13
Total fixed expense		=SUM(C29:C31)
Net operating income		=+D27-D32

*Cost of goods sold + Sales commission