Budgeted Income Statement with CVP

Madison Booksellers is planning a budget for $2018.$ The estimate of sales revenue is $$4,800,000$ and of cost of goods sold is $70$ percent of sales revenue. Depreciation on the office building and fixtures is budgeted at $$180,000.$ Salaries and wages are budgeted at $$300,000.$ Advertising has been budgeted at $$270,000$ and utilities should amount to $$210,000.$ 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 Answer

$0$

Cost of goods sold Answer

$0$

Gross margin Answer

$0$

Sales and administrative expenses

Depreciation Answer

$0$

Wages and salaries Answer

$0$

Advertising Answer

$0$

Utilities Answer

$0$

Answer

$0$

Net income before taxes Answer

$0$

Income taxes Answer

$0$

Net Income $($loss$)$ Answer

$0$

b$.$ Assuming management desired an after$-$tax income of $$315,000$ determine the necessary sales volume.

$Answer

$0$