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Noyell Company manufactures reverse umbrella. Below are the projected data of October 2021: Expected sales of October is 50,000 units at selling price $15 per
Noyell Company manufactures reverse umbrella. Below are the projected data of October 2021:
Expected sales of October is 50,000 units at selling price $15 per unit.
Cost of goods sold is expected to be 70% of sales.
Fixed selling and administrative expenses are:
- Salaries expense $ 80,000
- Supplies expense 35,000
- Interest expense 9,000
Instructions
- Compute the budgeted net income for October 2021.
- Assume that the the company can sell 50,000 units at an average of $16 per unit at the end of October 2021, compute the difference between budgeted and actual net income.
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