Dickinson Company prepared the following budgeted income statement for 2015:

Requirements
1. Prepare a budgeted income statement with columns for 800 units, 1,000 units, and 1,200 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 ofanalysis?

Transcribed Image Text:

DICKINSON COMPANY Budgeted Income Statement For the Year Ended December 31, 2015 Unit Sales Sales Revenue ($600 per unit) Cost of Goods Sold (60% of sales) Gross Profit Selling and Administrative Expenses (25% of sales) Operating Income 1,000 5 600,000 360,000 240,000 1 50,000 $ 90,000