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Pierceton Cycling has produced the following data for use in the budgeting process: Budgeted sales (units) $ 1,890 Sales price (per unit) $ 745 Cost
| Pierceton Cycling has produced the following data for use in the budgeting process: | ||
| Budgeted sales (units) | $ 1,890 | |
| Sales price (per unit) | $ 745 | |
| Cost (per unit) | $ 240 | |
| Variable selling and administrative expense (per unit) | $ 105 | |
| Fixed selling and administrative expense (per year) | $ 335,000 | |
| Interest expense | $ 14,000 | |
| Prepare the budgeted income statement for the year | ||
| Budgeted Income Statement | ||
| Sales | ||
| Cost of goods sold | ||
| Gross Margin | ||
| Selling and administrative expenses | ||
| Net operating income | ||
| Interest expense | ||
| Net income | ||
| If the price of aluminum causes the cost per unit to increase by 5%, calculate the Net Income: | ||
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Smith and Roberson Business Law
Authors: Richard A. Mann, Barry S. Roberts
15th Edition
1285141903, 1285141903, 9781285141909, 978-0538473637
