Budgeted Income Statement with CVP Madison Booksellers is planning a budget for 2018. The estimate of sales revenue is $800,000 and of cost of goods sold is 70 percent of sales revenue. Depreciation on the office building and fixtures is budgeted at $30,000. Salaries and wages are budgeted at $50,000. Advertising has been budgeted at $45,000 and utilities should amount to $35,000. 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. 4,000,000 x 2,800,000 x 1,200,000 * Madison Booksellers Budgeted Income Statement For the Year Ending Decemeber 31, 2018 Sales Cost of goods sold Gross margin Sales and administrative expenses Depreciation 150,000 x Wages and salaries 250,000 x Advertising 225,000 x Utilities 175,000 X Net income before taxes Income taxes Net Income (loss) 800,000 X 400,000 x 160,000 x 240,000 x b. Assuming management desired an after-tax income of $52,500 determine the necessary sales volume. $ 4,125,000