Dickinson Company prepared the following budgeted income statement for $2025$ :

$($Click the icon to view the budgeted income statement.$)$

Read the requirements.

Requirement $1.$ Prepare a budgeted income statement with columns for $400$ units, $1,400$ units, and $1,600$ units sold.

Dickinson Company

Budgeted Income Statement

For the Year Ended December $31,2025$

Sales Revenue

Cost of Goods Sold

Gross Profit

Selling and Administrative Expenses

Operating Income

Requirement $2.$ How might managers use this type of budgeted income statement?

The budgeted income statement prepared in Requirement $1$ is a

Data table

$\backslash$table$[[\backslash$table$[[$Dickinson Company$],[$Budgeted Income Statement$],[$For the Year Ended December $31,2025]]],[$Unit sales,$1,400],[$Sales Revenue $($ $$650$ per unit$),910,000],[$Cost of Goods Sold $(55\%$ of sales$),500,500],[$Gross Profit,$409,500],[$Selling and Administrative Expenses $(30\%$ of sales$),273,000],[$Operating Income,$136,500]]$

Requirement $3.$ How might spreadsheet software such as Excel assist in this type of analysis?

Technology, such as Excel spreadhseet software, makes it more to conduct $|$ and prepare a company's If managers have a better understanding of how changes in sales volume and costs are likely to affect if key assumptions turn out to be wrong.