A

Exercise $22-24($Algo$)$ Budgeted income statement LO P$3$

Fortune Incorporated is preparing its master budget for the first quarter. The company sells a single product at a price of $$25$ per unit. Sales $($in units$)$ are budgeted at $150,000$ for the first quarter. Cost of goods sold is $$12$ per unit. Other expense information for the first quarter follows.

Sales Commissions $8\%$ of sales dollars

Rent $ $49,000$ per quarter

Advertising $ $572,000$ per quarter

Office salaries $ $251,000$ per quarter

Depreciation $ $135,000$ per quarter

Interest $1\mathrm{.}75\%$ quarterly on $$270,000$ note payable

Tax rate $30\%$