Budgeted Income Statement $($Variable Costing$)$

For the Year Ended December $31,2024$

$1$st Qtr $2$nd Qtr $3$rd Qtr $4$th Qtr Year

Sales $$375,000\mathrm{.}00$ $$416,250\mathrm{.}00$ $$462,037\mathrm{.}50$ $$512,861\mathrm{.}63$ $$1,766,149\mathrm{.}13$

Less: Variable costs

Variable cost of goods sold $$231,000\mathrm{.}00$ $$256,410\mathrm{.}00$ $$284,615\mathrm{.}10$ $$315,922\mathrm{.}76$ $$1,087,947\mathrm{.}86$

Variable selling and administrative expenses $$11,250\mathrm{.}00$ $$12,487\mathrm{.}50$ $$13,861\mathrm{.}13$ $$15,385\mathrm{.}85$ $$52,984\mathrm{.}47$

Total variable expenses $$242,250\mathrm{.}00$ $$268,897\mathrm{.}50$ $$298,476\mathrm{.}23$ $$331,308\mathrm{.}61$ $$1,140,932\mathrm{.}33$

Contribution margin $$132,750\mathrm{.}00$ $$147,352\mathrm{.}50$ $$163,561\mathrm{.}28$ $$181,553\mathrm{.}02$ $$625,216\mathrm{.}79$

Less: Fixed Expenses

Manufacturing expenses $$23,006\mathrm{.}25$ $$23,006\mathrm{.}25$ $$23,006\mathrm{.}25$ $$23,006\mathrm{.}25$ $$92,025\mathrm{.}00$

Selling & administrative expenses $$127,300\mathrm{.}00$ $$127,300\mathrm{.}00$ $$127,300\mathrm{.}00$ $$127,300\mathrm{.}00$ $$509,200\mathrm{.}00$

Total fixed expenses $$150,306\mathrm{.}25$ $$150,306\mathrm{.}25$ $$150,306\mathrm{.}25$ $$150,306\mathrm{.}25$ $$601,225\mathrm{.}00$

Net operating income $$(17,556\mathrm{.}25)$ $$(2,953\mathrm{.}75)$ $$13,255\mathrm{.}03$ $$31,246\mathrm{.}77$ $$23,991\mathrm{.}79$

Less interest expense $$-$ $$-$ $$-$ $$-$ $$-$

Income before taxes $$(17,556\mathrm{.}25)$ $$(2,953\mathrm{.}75)$ $$13,255\mathrm{.}03$ $$31,246\mathrm{.}77$ $$23,991\mathrm{.}79$

Less income taxes $$(3,100\mathrm{.}68)$ $$(576\mathrm{.}26)$ $$3,163\mathrm{.}09$ $$7,313\mathrm{.}78$ $$6,799\mathrm{.}93$

Net income $$(14,455\mathrm{.}57)$ $$(2,377\mathrm{.}49)$ $$10,091\mathrm{.}93$ $$23,932\mathrm{.}98$ $$17,191\mathrm{.}86$

Break$-$even Point in units Margin of Safety in units

$849\mathrm{.}19176\mathrm{.}54$

Break$-$even in dollars Margin of Safety in dollars

$$424,594$ $$88,267\mathrm{.}70$

Margin of Safety percentage

$17\mathrm{.}21\%$

Reconciliation of NOI

NOI variable $=$ $$23,991\mathrm{.}79$

$+$fixed MOH per unit $*$ change in inventory $24\mathrm{.}47227\mathrm{.}71$ $$5,573\mathrm{.}14$

equals NOI absorption $$29,564\mathrm{.}93$

$($ Where from$/$how calculated is the breakeven point? Please provide an explenation $)$