Bolden Company prepared the following budgeted income statement for 2017:

Requirements
1. Prepare a budgeted income statement with columns for 1,300 units, 1,400 units, and 1,600 units sold.
2. How might managers use this type of budgeted income statement?
3. How might spreadsheet software such as Excel assist in this type of analysis?

Transcribed Image Text:

BOLDEN COMPANY Budgeted Income Statement For the Year Ended December 31, 2017 Unit Sales Sales Revenue ($700 per unit) Cost of Goods Sold (55% of sales) Gross Proit Selling and Administrative Expenses (35% of sales) Operating Income 1,400 $980,000 539,000 441,000 343,000 $ 98,000