Prepare a manufacturing cost budget, budgeted income statement and a contribution margin income statement.

Ins Styles Text Box Harvey's general manager, Mr. Lipscomb, and president, Mr. Owens, want a budget prepared for each quarte of the fiscal year 2018. They have asked various employees to gather information that they believe will be necessary for preparation of a budget. The information is presented below. Mr. LUipscomb nor Mr. Owens is skilled in budget preparation. Both executives have used budgets and have participated to some degree in budget preparation in prior years, but neither has prepared a full budget. Sales in units and selling price (SP) in dollars per unit Historical sales for 2017 for each of the two products are shown below. (There is a typo in the budget, 2012 Please replace with 2017) Screwdriver Units SP Units SP 20,10098 13,500118 February,0009813,000120 19 900 8 13.50012 19,000100 12.000125 21,500 10013,000 125 22,000 102 14,000 130 22,000 102 15,000 130 20,000 102 14,500 130 September19,500 100 13,500 125 19,000100 13,000 125 November 19,000 10012,500125 December8,000 10012,.500125 January March April May June July August2 Lipscomb, recommends that the budget be prepared with the units sold in the high sales months of May, June, and July be used as the bases for determining the annual forecast. Mr. Lipscomb's recommendation is that annual sales be budgeted at 22,000 units per month for screwdrivers and 15,000 units per month for saws Mr. upscomb also believes that the budgeted selling price per unit should be equal to the highest selling price that could be achieved in 2017. He would like to budget $102 per unit for screwdrivers and $130 per unit for saws. Mr. Lipscomb states that his management team experimented with pricing in the prior year, beginning with the first month of the year. Print Layout View Sec Pages2 of 5 Words: 68 of 100% nmm