Great Presentation Company is a manufacturer of videoconferencing products. Maintaining the videoconferencing equipment is an important area of customer satisfaction. A recent downturn in the computer industry has caused the videoconferencing equipment segment to suffer, leading to a decline in Great Presentation's financial performance. The following income statement shows results for 2017: E: (Click the icon to view the income statement.) Data Table Great Presentation's management team is preparing the 2018 budget and is studying the following information: A (Click the icon to view the information.) Read the requirements. Great Presentation Company Income Statement for the Year Ended December 31, 2017 in thousands) Requirement 1. Prepare a budgeted income statement for the year ending December 31, 2018. (Round your answers to the nearest whole thousand.) Revenues: Equipment $ 1 More Info Great Presentation Company Budgeted Income Statement for 2018 (in thousands) 6,500 1,500 Maintenance contracts Total revenues 8,000 4,000 Revenues: 6500 1500 4,000 Equipment Maintenance contracts Total revenues Cost of goods sold Gross margin Operating costs Marketing Distribution Cost of goods sold Gross margin Operating costs Marketing Distribution 1. Selling prices of equipment are expected to increase by 15% as the economic recovery begins. The selling price of each maintenance contract is expected to remain unchanged from 2017. 2. Equipment sales in units are expected to increase by 8%, with a corresponding 8% growth in units of maintenance contracts. 3. Cost of each unit sold is expected to increase by 5% to pay for the necessary technology and quality improvements. 4. Marketing costs are expected to increase by $200,000, but administration costs are expected to remain at 2017 levels. 5. Distribution costs vary in proportion to the number of units of equipment sold. 6. Two maintenance technicians are to be hired at a total cost of $190,000, which covers wages and related travel costs. The objective is to improve customer service and shorten response time. 7. There is no beginning or ending inventory of equipment. 600 150 1,900 990 Customer maintenance Administration Total operating costs 3,640 360 Operating income Customer maintenance Administration Print Done Total operating costs Print Done Operating income Requirement 2. How well does the budget align with Great Presentation's strategy? The budget V with Great Presentation's key strategy of customer satisfaction through maintaining videoconferencing equipment by Choose from any list or enter any number in the input fields and then continue to the next question. Great Presentation Company is a manufacturer of videoconferencing products. Maintaining the videoconferencing equipment is an important area of customer satisfaction. A recent downturn in the computer industry has caused the videoconferencing equipment segment to suffer, leading to a decline in Great Presentation's financial performance. The following income statement shows results for 2017: 3 Click the icon to view the income statement.) Great Presentation's management team is preparing the 2018 budget and is studying the following information: (Click the icon to view the information.) Read the requirements. 1500 Maintenance contracts Total revenues Cost of goods sold Gross margin Operating costs Marketing Distribution Customer maintenance Administration Total operating costs Operating income Requirement 2. How well does the budget align with Great Presentation's strategy? The budget with Great Presentation's key strategy of customer satisfaction through maintaining videoconferencing equipment by Requirement 3. How does preparing the budget help Great Presentation's management team better manage the company? The budget helps Great Presentation's management team: (Select all that apply.) Choose from any list or enter any number in the input fields and then continue to the next question. Great Presentation Company is a manufacturer of videoconferencing products. Maintaining the videoconferencing equipment is an important area of customer satisfaction. A recent downturn in the computer industry has caused the videoconferencing equipment segment to suffer, leading to a decline in Great Presentation's financial performance. The following income statement shows results for 2017: E: (Click the icon to view the income statement.) Data Table Great Presentation's management team is preparing the 2018 budget and is studying the following information: A (Click the icon to view the information.) Read the requirements. Great Presentation Company Income Statement for the Year Ended December 31, 2017 in thousands) Requirement 1. Prepare a budgeted income statement for the year ending December 31, 2018. (Round your answers to the nearest whole thousand.) Revenues: Equipment $ 1 More Info Great Presentation Company Budgeted Income Statement for 2018 (in thousands) 6,500 1,500 Maintenance contracts Total revenues 8,000 4,000 Revenues: 6500 1500 4,000 Equipment Maintenance contracts Total revenues Cost of goods sold Gross margin Operating costs Marketing Distribution Cost of goods sold Gross margin Operating costs Marketing Distribution 1. Selling prices of equipment are expected to increase by 15% as the economic recovery begins. The selling price of each maintenance contract is expected to remain unchanged from 2017. 2. Equipment sales in units are expected to increase by 8%, with a corresponding 8% growth in units of maintenance contracts. 3. Cost of each unit sold is expected to increase by 5% to pay for the necessary technology and quality improvements. 4. Marketing costs are expected to increase by $200,000, but administration costs are expected to remain at 2017 levels. 5. Distribution costs vary in proportion to the number of units of equipment sold. 6. Two maintenance technicians are to be hired at a total cost of $190,000, which covers wages and related travel costs. The objective is to improve customer service and shorten response time. 7. There is no beginning or ending inventory of equipment. 600 150 1,900 990 Customer maintenance Administration Total operating costs 3,640 360 Operating income Customer maintenance Administration Print Done Total operating costs Print Done Operating income Requirement 2. How well does the budget align with Great Presentation's strategy? The budget V with Great Presentation's key strategy of customer satisfaction through maintaining videoconferencing equipment by Choose from any list or enter any number in the input fields and then continue to the next question. Great Presentation Company is a manufacturer of videoconferencing products. Maintaining the videoconferencing equipment is an important area of customer satisfaction. A recent downturn in the computer industry has caused the videoconferencing equipment segment to suffer, leading to a decline in Great Presentation's financial performance. The following income statement shows results for 2017: 3 Click the icon to view the income statement.) Great Presentation's management team is preparing the 2018 budget and is studying the following information: (Click the icon to view the information.) Read the requirements. 1500 Maintenance contracts Total revenues Cost of goods sold Gross margin Operating costs Marketing Distribution Customer maintenance Administration Total operating costs Operating income Requirement 2. How well does the budget align with Great Presentation's strategy? The budget with Great Presentation's key strategy of customer satisfaction through maintaining videoconferencing equipment by Requirement 3. How does preparing the budget help Great Presentation's management team better manage the company? The budget helps Great Presentation's management team: (Select all that apply.) Choose from any list or enter any number in the input fields and then continue to the next