Jamison Company prepared the following budgeted income statement for 2019:

Requirement 1. Prepare a budgeted income statement with columns for 1,100 units, 1,200 units, and1,800 units sold.

Requirement 2. How might managers use this type of budgeted income statement?

Options for above questions:

Space one: flexible or static

Space two: only a single or various

Three: cost-effective or time-consuming

Four: financial statement analysis or sensitivity / what if test

Five: annual report or master budget

Six: net income or the annual report

Seven: maintain the same course of action or react quickly and make changes

Jamison Company Budgeted Income Statement For the Year Ended December 31, 2019 Unit sales 1,200 Sales Revenue ($300 per unit) $ 360,000 270,000 Cost of Goods Sold (75% of sales) Gross Profit 90,000 72,000 Selling and Administrative Expenses (20% of sales) $ 18,000 Operating Income Jamison Company Budgeted Income Statement For the Year Ended December 31, 2019 Unit sales 1,100 1,200 1,800 Sales Revenue Cost of Goods Sold Gross Profit Selling and Administrative Expenses Operating Income The budgeted income statement prepared in Requirement 1 is a budget. It allows Jamison's managers to plan for sales level(s). Requirement 3. How might spreadsheet software such as Excel assist in this type of analysis? and prepare a company's Technology, such as Excel spreadhseet software, makes it more to conduct If managers have a better understanding of how changes in sales volume and costs are likely to affect if key assumptions turn out to be wrong. they can