The following information is available for year for Dancer Components: All depreciation charges are fixed and are

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The following information is available for year for Dancer Components:

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All depreciation charges are fixed and are expected to remain the same for year 2. Sales volume is expected to increase by 18 percent, but prices are expected to fall by 5 percent. Materials costs per unit are expected to decrease by 8 percent. Other unit variable manufacturing costs are expected to decrease by 2 percent per unit. Fixed manufacturing costs are expected to increase by 5 percent.
Variable marketing costs will change with volume. Administrative cash costs are expected to increase by 10 percent. Inventories are kept at zero. Dancer operates on a cash basis.
Required Prepare a budgeted income statement for year 2.

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Fundamentals Of Cost Accounting

ISBN: 0071332618

2nd Edition

Authors: William Lanen, Shannon Anderson

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