Question
(12 pts) 8. The following information is available for 2022 for Anderson Incorporated: Revenue (200,000 units) $1,600,000 Manufacturing costs: Materials cash costs 100,000 Variable overhead
(12 pts) 8. The following information is available for 2022 for Anderson Incorporated:
Revenue (200,000 units) $1,600,000
Manufacturing costs:
Materials cash costs 100,000
Variable overhead cash costs 80,000
Fixed overhead cash costs 125,000
Manufacturing depreciation 300,000
Marketing and administrative costs:
Variable marketing cash costs 200,000
Marketing depreciation 50,000
Administrative cash costs 180,000
Administrative depreciation 20,000
Total costs $1,055,000 Operating income $545,000
All depreciation charges are expected to remain the same for 2023. Sales volume is expected to increase by 30 percent, but prices are expected to fall by 8 percent. Material cash costs are expected to decrease by 15 percent. Variable manufacturing overhead cash costs are expected to decrease by 8 percent per unit. Fixed manufacturing cash overhead costs are expected to increase by 12 percent.
Variable marketing cash costs change with volume. Administrative cash costs are expected to increase by 8 percent. Inventories are kept at zero.
Required:
Prepare a budgeted income statement for 2023.
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