Information for next years budget

Revenue is projected to be $24,150,000 based on expanding into the West Coast

A regional office is to be opened on the West Coast and the CEO expects all managers to spend time in the office as well as have a full time marketing employee at the office.

1.) Prepare next years departmental preliminary budget based on the above information and past years experience.

2.) You must provide an explanation / justification for each line item in the budget and salaries can be considered one line item.

Income Statement YEAR ONE Income Statement YEAR TWO VARIANCE +under budget et Budgeted Actual budget Budgeted Actual budget Sales Revenue Cost of Goods Sold 21000,000$22,500,000 $ 12,600,000 8,400,000 13,950,000 8,550,000 (1,500,000) 1,350,000 (150,000) Sales Revenue Cost of Goods Sold $23,250,00020,450,000 12,679,000 7,771,000 14.298,750 8,951,250 2,800,000 1,619,750 1,180,250 Gross Profit SG&A Expense by SG&A Expense by Department [inclding Department [inclding Aanyy Warehouse & Shipping 2,310,000 1,933,940 315,000 1,050,000 950.000 6,558,940 1.841.060 2,410,000 2,123,885 318,000 1.275,000 1,250,000 7,376,885 2,441,250 1,363,159 327,600 1,278,750 997,500 7,008,259 1942,991 100,000) (189,945) 89,500 79,540 Aanyy IIT Warehouse & Shipping (3,000) (225,000) 300000Corporate Executives (817,945) 667,945 1,883,619 325,000 1,022,500 975,500 6,558,369 1,212,631 256,250 22,000 449,890 730.360 TOTAL SG&A Expense Net Operating Profit TOTAL SG&A Expense Net Operating Profit Profit Margin Profit Margin Income Statement CURRENT YEAR JAN JUN Jan Jun Actual FullYear Budget Results Sales Revenue Cost of Goods Sold $23,000,000 $12,250,000 7,533,750 4.716,250 14,490,000 8,510,000 Gross Profit SG&A Expense by Department [inclding Aanyy Warehouse & Shipping 2,300,000 2.322,390 330,000 1,150,000 1,027,425 7,129,815 1,380,185 1,286,250 1,329,236 168,300 551,250 436,656 3,771.692 944 558 TOTAL SG&A Expense Net Operating Profit Profit Margin Background and QuestionsIncome Statement Salaries Other SG&A