Kraken Company prepared the following budgeted income statement for 2021: (30 Points)

Kraken Company
Budgeted Income Statements, year ended 31 December 2020
			$
Unit Sales			1.400,00
Sales Revenue ($700 per unit)			980.000,00
Cost of Goods Sold (55% of sales)			539.000,00
Gross Profit			441.000,00
Selling and Administrative Expenses (35% of sales)			343.000,00
Operating Income			98.000,00

Using Master Budget using Excel, answer and argument the following questions:

1. Prepare a budgeted income statement with columns for 1,300 units, 1,400 units, and 1,600 units sold.

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