Cost Classification:The Lee's have provided you with the following costs and relevant information that are assumed for year 20XY.

Prepare budgeted income statement, assuming 600 units to be produced and sold, a per unit selling price of $85, an income tax rate of 28% and the following information

a.Cost of goods sold of $35 per unit

b.Labor = $400/month

i.One part-time employee will be hired to take care of packaging and shipping. This employee will be paid $10 per hour. He or she is estimated to work 40 hours total per month.

c.Advertising fees = $3,000

d.Bank fees = $200

e.Phone/internet =$150 per month

f.Shipping = $3 per unit

g.Utilities = $100 per month

h.Office Supplies= $900

i.Conference Exhibitor Fee = $3000

j.TravelExpenses for Conference (e.g. airfare, meals, taxi) = $1200

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