Question

Labs performs a specialty lab test for local companies for $ 48 per test. For the upcoming​ quarter, Bentfield Labs is projecting the following​ sales: January 5,000 February 4,500 March 5,200 Number of lab tests . . . . . The budgeted cost of performing each test is $ 21. Operating expenses are projected to be $62,000 in​ January, $54,000 in​ February, and $64,000 in March. Bentfield Labs is subject to a corporate tax rate of 30​%. Requirement Prepare a budgeted income statement for the first​ quarter, with a column for each month and for the quarter. Prepare the budgeted income statement by first calculating the operating​ income, then calculate the net income.

Answer 1

Answer-

BUDGETED INCOME STATEMENT
PARTICULARS	JANUARY	FEBRUARY	MARCH	QUARTER
Sales	5000 tests*$48 per test =$240000	4500 tests*$48 per test =$216000	5200 tests*$48 per test =$249600	$705600
Less- Cost of performing of tests	5000 tests*$21 per test =$105000	4500 tests*$21 per test =$94500	5200 tests*$21 per test =$109200	$308700
Gross profit	135000	121500	140400	396900
Less- Operating expenses	62000	54000	64000	180000
Operating income	73000	67500	76400	216900
Less- Corporate Tax @30%	21900	20250	22920	65070
Net Income	51100	47250	53480	151830