EX 10-1: Mike Tackett, manager of the Troopers Caf, has asked for your assistance on preparing the monthly budget for January 20X8. He provides you with the prior January actuals as follows:

Assume for 20X8 sales are expected to increase by 10 percent, fixed costs will increase by 5 percent, and variable costs will remain at the same percentage of sales as experienced in the prior January. Required: Prepare the budget for January 20X8.

$100,400 Sales Expenses: Labor (F) Labor (V) Cost of sales (V) Supplies (V) Energy (V) Promotion (V) $12,000 $18,000 $36,000 $3,200 $2,620 $1,300 Maintenance (F) Maintenance (V) Property taxes (F) Depreciation (F) Rent (F) Insurance (F) Subtotal Net income $2,000 $1,200 $800 $1,000 $850 $625 $79,595 $20,805