Budgeted Income Statement with CVP Madison Booksellers is planning a budget for 2018. The estimate of sales revenue is $2,400,000 and of cost of goods sold is 70 percent of sales revenue. Depreciation on the office building and fixtures is budgeted at $90,000. Salaries and wages are budgeted at $150,000. Advertising has been budgeted at $135,000 and utilities should amount to $105,000. Income tax is estimated at 40 percent of operating income. Required a. Prepare a budgeted income statement for 2018. Use a negative sign only to indicate a net loss for income. Otherwise, do not use negative sings with your answers. Madison Booksellers Budgeted Income Statement For the Year Ending Decemeber 31, 2018 Sales Cost of goods sold Gross margin Sales and administrative expenses Depreciation Wages and salaries Advertising Utilities Net income before taxes Income taxes Net Income (loss) b. Assuming management desired an after-tax income of $157,500 determine the necessary sales volume