If growth is actualiy 11. percent as usual, how much bonus would Atlantic Division's executive afficers receive if the president had approved the division's proposal? Jordan Corporation has three divisions, each operating as a responsibility center. To provide an incentive for divisional executive officers, the company gives divisional management a bonus equal to 18 percent of the excess of actual net income over budgeted net income. The following is Atlantic Division's current year's performance. The president has just received next year's budget proposal from the vice president in charge of Attantic Division. The proposal budgets a 6 percent increase in sales revenue with an extensive explanation about stiff market competition. The president is puzzied Atlantic has enjoyed revenue growth of around 11 percent for each of the past five years. The president had consistently approved the division's budget proposals based on 6 percent growth in the past. This time, the president wants to show that he is not a fool. "I will impose a 16 percent revenue increase to teach them a lesson the president says to himself smugly. Assume that cost of goods sold and selling and administrative expenses remain stable in proportion to sales. Required a. Prepare the budgeted income statement based on Atlantic Division's proposal of a 6 percent increase. b-1. Prepare income statement with 11 percent growth. b-2. If growth is actually 11 percent as usuat, how much bonus would Atlantic Division's executive officers receive if the president had approved the division's proposal? c. Prepare the budgeted income statement based on the 16 percent increase the president imposed. d. If the actual results turn out to be a 11 percent increase as usual, how much bonus would Atiantic Division's executive officers recelve since the president imposed a 16 percent increase? Prepare the budgeted income statement based on Atlantic Division's proposal of a 6 percent increase. Prepare the budgeted income statement based on the 16 percent increase the president imposed, If the actual resuits turn out to be a 11 percent increase as usual, how much bonus would atiantic otrdeion's executhe officers recelue since the president imposed a 16 percent increase? Prepare income statement with 11 percent growth. If growth is actualiy 11. percent as usual, how much bonus would Atlantic Division's executive afficers receive if the president had approved the division's proposal? Jordan Corporation has three divisions, each operating as a responsibility center. To provide an incentive for divisional executive officers, the company gives divisional management a bonus equal to 18 percent of the excess of actual net income over budgeted net income. The following is Atlantic Division's current year's performance. The president has just received next year's budget proposal from the vice president in charge of Attantic Division. The proposal budgets a 6 percent increase in sales revenue with an extensive explanation about stiff market competition. The president is puzzied Atlantic has enjoyed revenue growth of around 11 percent for each of the past five years. The president had consistently approved the division's budget proposals based on 6 percent growth in the past. This time, the president wants to show that he is not a fool. "I will impose a 16 percent revenue increase to teach them a lesson the president says to himself smugly. Assume that cost of goods sold and selling and administrative expenses remain stable in proportion to sales. Required a. Prepare the budgeted income statement based on Atlantic Division's proposal of a 6 percent increase. b-1. Prepare income statement with 11 percent growth. b-2. If growth is actually 11 percent as usuat, how much bonus would Atlantic Division's executive officers receive if the president had approved the division's proposal? c. Prepare the budgeted income statement based on the 16 percent increase the president imposed. d. If the actual results turn out to be a 11 percent increase as usual, how much bonus would Atiantic Division's executive officers recelve since the president imposed a 16 percent increase? Prepare the budgeted income statement based on Atlantic Division's proposal of a 6 percent increase. Prepare the budgeted income statement based on the 16 percent increase the president imposed, If the actual resuits turn out to be a 11 percent increase as usual, how much bonus would atiantic otrdeion's executhe officers recelue since the president imposed a 16 percent increase? Prepare income statement with 11 percent growth