Company: Mug Maker Sales Forecast Budget Budgeted Income Stateent- Mug Maker Budgeting sales (in units) Selling price per unit Budgeted sales (in dollars) 40,000 $7.00 $280,000 Sales Less: Cost of Goods Sold Manufacturing Cost Budget Gross Profit Variable manufacturing costs: Less: Operating expenses Direct Materials (40000 units at $2.00 per unit) $ 80,000 Marketing expenses R & D expenses Administrative expenses 80,000 Direct Labor (40000 units at 2 hours per unit) Fixed Manufacturing Overhead Total cost of finished goods manufactured Manufacturing Cost per unit $ 210000 40000 units $5.25 50,000 $ 210,000 Total Operating expenses Cost of Goods Sold Budget Net Income S 1,600 210,000 $ 211,600 2,000 $ 209,600 Net Income Percentage Beginning finished goods inventory Add: cost of finished goods manufactured Cost of goods available for sale Less: Ending finished goods inventory Cost of goods sold Use the 4 operationals budgets on the left to complete the budgeted income statement above Sales and Administrative Budget Marketing expenses R & D expenses Administrative expenses Total Operating Expenses $25,000 5,000 29,200 $59,200