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Assignment: Chapter 9 Homework 4. Bratt Simpson manufactures a specialty precision scale. For January, the company expects to sell 1.000 scales at an average price
Assignment: Chapter 9 Homework 4. Bratt Simpson manufactures a specialty precision scale. For January, the company expects to sell 1.000 scales at an average price of $2,370 per unit. The average manufacturing cost of each unit sold is $1,470. Variable operating expenses for the company will be $1.70 per unit sold and fixed operating expenses are expected to be $7.200 for the month. Monthly interest expense is $3,300. The company has a tax rate of 20% of income before taxes. Prepare Bratt Simpson's budgeted income statement for January Bratt Simpson Budgeted Income Statement For the Month Ended January 31 Sales Less: Cost of goods sold Gross profit Less: Operating expenses Variable portion Fixed portion Operating income Less: Interest expense Less: Income tax expense Net income
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