A - INCOME STATEMENT

1. Prepare a budgeted income statement through operating income by quarter and for the year using the contribution margin format--use the format provided on the template as a reference. Then add interest expense to your income statement to determine income before tax. Interest expense can be calculated from the information provided for the cash budget. (For purposes of this project, we will ignore income taxes.)
2. Using your budgeted income statement for the year, answer the following questions at the bottom of your income statement sheet. You should use operating income in your calculations, not income before tax. Label your answers, but make sure that your answers contain formulas incorporating cell references.

• What is the budgeted break-even point in units? (Round to the nearest whole unit)
• What is the margin of safety percentage at the budgeted activity level for the year? (Round to the nearest one percent)
• What is operating leverage at the budgeted activity level for the year? (Round to one decimal place)
• If Crossley wants to earn a $6,500,000 operating profit next year, how many units must the company sell? (Round to the nearest whole unit)

The Part 2 questions are what I need most!

G H 2 3 4 2018 SALES: 2019 SALES 2020 SALES SALES PRICE: 170000 204000 244800 $ 210 6 SALES BUDGET 7 9 QTR1 QTR 2 QTR3 QTR4 YR 406006 1200 71400 30600 204000 210 210 210 8568000 12852000 14994000 6426000 42840000 210 8 UNITS SALES PRICE 10 Budgeted revenue 11 12 PRODUCTION BUDGET 13 Budgeted sales 14 +El required 15 Total needs 16 -BI on hand 17 Total production required 406006 1200 6120 7140 46920 68340 3440 6120 43480 62220 71400 3060 74460 7140 67320 30600 4896 35496 3060 32436 204000 4896 208896 Q1-2020 Q2-2020 48960 73440 7344 56304 4896 51408 205456 51408 10 514080 19 MATERIALS PURCHASES BUDGET 20 Budgeted production 21 Std feet per unit 22 Total feet for production 23 +El required 24 Total feet needed 25 -B1 Total feet to be purchased 27 $5/ft 28 Total cost of purchases 15% 43480 10 434800 93330 528130 55000 473130 62220 10 622200 100980 723180 93330 629850 5 3149250 67320 10 673200 48654 721854 100980 620874 5 3104370 32436 10 324360 77112 401472 48654 352818 2054560 77112 2131672 55000 2076672 26 2365650 1764090 10383360 29 30 DIRECT LABOR BUDGET 31 Production 32 Std hours per unit 33 Total labor hours needed 34 $9.00/DLH Taal Operating Budgets 43480 62220 67320 6 6 6 260880 373320 403920 9 9 9 Income Statement Cash Budget 32436 205456 6 6 194616 1232736 9 9 Balance Sheet + 24 Total feet needed 25 -BI 26 Total feet to be purchased 27 $5/t 28 Total cost of purchases 528130 55000 473130 723180 93330 629850 721854 100980 620874 401472 2131672 48654 55000 352818 2076672 2365650 3149250 3104370 1764090 10383360 29 43480 62220 67320 32436 205456 260880 373320 403920 194616 1232736 2347920 3359880 3635280 1751544 11094624 30 DIRECT LABOR BUDGET 31 Production 32 Std hours per unit 33 Total labor hours needed $9.00/DLH 35 Total cost of direct labor 36 37 OVERHEAD BUDGET: 38 Total labor hours needed 39 $6.00/DLH 40 Total variable overhead 41 Fixed overhead-depreciation 42 Fixed overhead-other 43 Total budgeted overhead 44 45 SELLING & ADMIN BUDGET 46 Variable selling-commissions 47 Fixed selling 48 Fixed admin 49 Depreciation-selling 50 Depreciation-admin 51 Total budgeted selling & admin cost 52 260880 6 1565280 90000 524000 2179280 373320 6 2239920 90000 524000 2853920 403920 6 2423520 122500 524000 3070020 194616 1232736 6 6 1167696 7396416 122500 425000 524000 2096000 1814196 9917416 3.5096 299880 850000 980000 75000 120000 2324880 449820 850000 980000 75000 120000 2474820 524790 850000 980000 75000 120000 2549790 224910 850000 980000 75000 120000 2249910 1499400 3400000 3920000 300000 480000 9599400 53 55 56 57 mm Operating Budgets Income Statement Cash Budget Balance Sheet + G H 2 3 4 2018 SALES: 2019 SALES 2020 SALES SALES PRICE: 170000 204000 244800 $ 210 6 SALES BUDGET 7 9 QTR1 QTR 2 QTR3 QTR4 YR 406006 1200 71400 30600 204000 210 210 210 8568000 12852000 14994000 6426000 42840000 210 8 UNITS SALES PRICE 10 Budgeted revenue 11 12 PRODUCTION BUDGET 13 Budgeted sales 14 +El required 15 Total needs 16 -BI on hand 17 Total production required 406006 1200 6120 7140 46920 68340 3440 6120 43480 62220 71400 3060 74460 7140 67320 30600 4896 35496 3060 32436 204000 4896 208896 Q1-2020 Q2-2020 48960 73440 7344 56304 4896 51408 205456 51408 10 514080 19 MATERIALS PURCHASES BUDGET 20 Budgeted production 21 Std feet per unit 22 Total feet for production 23 +El required 24 Total feet needed 25 -B1 Total feet to be purchased 27 $5/ft 28 Total cost of purchases 15% 43480 10 434800 93330 528130 55000 473130 62220 10 622200 100980 723180 93330 629850 5 3149250 67320 10 673200 48654 721854 100980 620874 5 3104370 32436 10 324360 77112 401472 48654 352818 2054560 77112 2131672 55000 2076672 26 2365650 1764090 10383360 29 30 DIRECT LABOR BUDGET 31 Production 32 Std hours per unit 33 Total labor hours needed 34 $9.00/DLH Taal Operating Budgets 43480 62220 67320 6 6 6 260880 373320 403920 9 9 9 Income Statement Cash Budget 32436 205456 6 6 194616 1232736 9 9 Balance Sheet + 24 Total feet needed 25 -BI 26 Total feet to be purchased 27 $5/t 28 Total cost of purchases 528130 55000 473130 723180 93330 629850 721854 100980 620874 401472 2131672 48654 55000 352818 2076672 2365650 3149250 3104370 1764090 10383360 29 43480 62220 67320 32436 205456 260880 373320 403920 194616 1232736 2347920 3359880 3635280 1751544 11094624 30 DIRECT LABOR BUDGET 31 Production 32 Std hours per unit 33 Total labor hours needed $9.00/DLH 35 Total cost of direct labor 36 37 OVERHEAD BUDGET: 38 Total labor hours needed 39 $6.00/DLH 40 Total variable overhead 41 Fixed overhead-depreciation 42 Fixed overhead-other 43 Total budgeted overhead 44 45 SELLING & ADMIN BUDGET 46 Variable selling-commissions 47 Fixed selling 48 Fixed admin 49 Depreciation-selling 50 Depreciation-admin 51 Total budgeted selling & admin cost 52 260880 6 1565280 90000 524000 2179280 373320 6 2239920 90000 524000 2853920 403920 6 2423520 122500 524000 3070020 194616 1232736 6 6 1167696 7396416 122500 425000 524000 2096000 1814196 9917416 3.5096 299880 850000 980000 75000 120000 2324880 449820 850000 980000 75000 120000 2474820 524790 850000 980000 75000 120000 2549790 224910 850000 980000 75000 120000 2249910 1499400 3400000 3920000 300000 480000 9599400 53 55 56 57 mm Operating Budgets Income Statement Cash Budget Balance Sheet +