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Fortune, Inc., is preparing its master budget for the first quarter. The company sells a single product at a price of $25 per unit. Sales
Fortune, Inc., is preparing its master budget for the first quarter. The company sells a single product at a price of $25 per unit. Sales (in units) are forecasted at 43,000 for January, 63,000 for February, and 53,000 for March. Cost of goods sold is $12 per unit. Other expense information for the first quarter follows.
Commissions | 10 | % | of sales dollars | ||
Rent | $ | 23,000 | per month | ||
Advertising | 11 | % | of sales dollars | ||
Office salaries | $ | 80,000 | per month | ||
Depreciation | $ | 45,000 | per month | ||
Interest | 12 | % | annually on a $290,000 note payable | ||
Tax rate | 30 | % | |||
FORTUNE, INC. Budgeted Income Statement For Quarter Ended March 31 Operating expenses
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