Question

The following fictitious summary data has been provided for the company to use in the annual budgeting process: Budgeted unit sales 460 Selling price per unit $1,950 Cost per unit $1,575 Variable selling and administrative expense $75 (per unit) Fixed selling and administrative expense $105,000 (per year) Interest expense for the year $14,000

Please prepare the companys budgeted income statement for the year

Answer 1

Budgeted Income Statement Particulars Sales Cost of goods sold Gross Profit Selling and Administrative expense Income From Operations. Interest Expense Net Income Amount $ 897,000 $(724,500) $ 172,500 $(139,500) $ 33,000 $ (14,000) $ 19,000 Note : Please comment down for any further clarifications Note : Selling and Administrative expense Variable (460 Units *$75) Fixed $ 34,500 $ 105,000 $ 139,500