Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Budgeted Income Statement Budgeted Income Statement Data Table Shaded cells have feedback. Final Questions Shaded c Interest revenue for the year $2,000 Interest expense for
Budgeted Income Statement Budgeted Income Statement Data Table Shaded cells have feedback. Final Questions Shaded c Interest revenue for the year $2,000 Interest expense for the year $1,500 3. LearnCo is aware that its labor prices for the Gluing part of the manufacturing process may increase to $15.00 per hour due to cha wage laws in its state. If this occurs, what will be the effect on Learn Co's income before income tax? LearnCo's income tax rate 40% If Gluing labor costs increase to $15.00 per hour, LearnCo will break even (i.e., the company will have zero income before LearnCo Score: 52/52 O LearnCo will have a loss before income tax if Gluing labor costs increase to $15.00 per hour. Budgeted Income Statement LearnCo will still have positive income before income tax if Gluing labor costs increase to $15.00 per hour. For the Year Ending December 31, 20Y2 Points 1 Revenue from sales $720,000.00 2 Cost of goods sold 388,978.00 Feedback 3 Gross profit $331,022.00 Check My Work 4 Selling and administrative expenses: 5 Selling expenses $65,400.00 Consider the change in the cost of gluing wages and its effect on the Direct Labor Cost Budget, then follow that change throug chain to the Budgeted Income Statement. 6 Administrative expenses 154,000.00 Total selling and administrative expenses 219.400.00 8 Income from operations $111,622.00 4. LearnCo's controller believes that the company can decrease its selling expenses by 10% and its administrative expenses by 15% income before income tax increase if these expense cuts are implemented? Round your answer to the nearest dollar. 9 Other revenue and expense: 10 $142,122 X $2,000.00 Interest revenue Points 11 Interest expense 1,500.00 500.00 12 Income before income tax $112,122.00 Feedback 13 Income tax 44,849.00 14 Net income $67.273.00
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started