Prepare the 20Y2 budgets.

The company is trying to decide how many units to manufacture, how much it might spend on direct materials and direct labor, and what their factory overhead expenses might be. In addition, the company is interested in budgeting for selling and administrative costs, and in creating a budgeted income statement showing a prediction of net income for 20Y2.

wrong subject; this is for Accounting

LearnCo Selling and Administrative Expenses Budget For the Year Ending December 31, 20Y2 Selling expenses: Sales salaries expense $45,000 Advertising expense 15,000 Travel expense 5,400 Total selling expenses $65,400 Administrative expenses: Officers' salaries expense $85,000 Office salaries expense 35,000 Office rent expense 26,000 Office supplies expense 6,400 Miscellaneous administrative expenses 1,600 Total administrative expenses 154.000 Total selling and administrative expenses $219,400 $2,000 Budgeted Income Statement Data Table Interest revenue for the year Interest expense for the year LearnCo's income tax rate $1,500 40% $720,000.00 392,573.00 $327,427.00 $65,400.00 LearnCo Budgeted Income Statement For the Year Ending December 31, 20Y2 1 Revenue from sales 2 Cost of goods sold 3 Gross profit Selling and administrative expenses: 5 Selling expenses 6 Administrative expenses 7 Total selling and administrative expenses Income from operations Other revenue and expense: 10 Interest revenue 11 Interest expense 12 Income before income tax 13 Income tax 14 Net income 154,000.00 219,400.00 $108,027.00 $2,000.00 (1,500.00) 500.00 $108,527.00 43,411.00 $65,116.00 LearnCo Sales Budget For the Year Ending December 31, 20Y2 Product Unit Sales Volume Unit Selling Price Total Sales $6.00 $216,000 Basic Abacus Deluxe Abacus 504,000 Totals 72.000 $720,000 LearnCo Production Budget For the Year Ending December 31, 20Y2 Units Basic Units Deluxe 1.000 3,000 Expected units to be sold (from Sales Budget) Plus desired ending inventory, December 31. 2012 Total units required Less estimated beginning inventory, January 1, 20Y2 Total units to be produced 1,050 2,100 Direct Materiais Data Table Wood Pieces Beads 2 2 Packages required per unit: Basic abacus Deluxe abacus Cost per package: Wood pieces Beads Units to be produced (from Production Budget): Basic abacus Deluxe abacus $0.25 $0.25 Learno Direct Materials Purchases Budget For the Year Ending December 31, 2072 Direct Materials Wood Pieces Packages required for production: Beads Total Basic abacus 2,200 5,000 Deluxe abacus Plus desired ending inventory, December 31, 20Y2 Total packages required Less estimated beginning inventory, January 1, 2012 Total packages to be purchased Unit price (per package) Total direct materials to be purchased 3,500 4,500 $72.888 LearnCo Factory Overhead Cost Budget For the Year Ending December 31, 20Y2 Indirect factory wages $5,400 Power and light Depreciation of plant and equipment 1,450 Total factory overhead cost $18,100 1. LeamCo believes that sales of the Deluxe Abacus model may decrease in 2012. Deluxe abacus sales are zero, what will be the effect on LearnCo's income before income tax ? For simplicity. Ignore any change in Cost of Goods Sold. LearnCo will still have positive income before income tax if it selis zero Deluxe Abacus units in 2012 LeamCo will have a net loss before income tax it it sells zero Deluxe Abacus units in 20Y2 If LearnCo sells zero Deluxe Abacus units in 2022, it will break even (e., the company will have zero income before income tax) 2. LeamCo's vendor for bead packages is expected to double its price per package of beads. If this occurs, what will be the effect on LearnCo's income before income tax? LearnCo will have a loss before income tax if the price for bead packages doubles LearnCo will still have positive income before income tax it the price for bead packages doubles If the price for bead packages doubles, LearnCo will break even fie, the company will have zero income before income tax) 3. LeamCo is aware that its labor prices for the Gluing part of the manutacturing process may increase to $15.00 per hour due to changes in minimum wage laws in its state. If this occurs, what will be the effect on LearnCo's income before income tax? If Gluing labor costs increase to $15.00 per hour, LeamCo will break even e, the company will have zero income before income tax). LeamCo will still have positive income before income tax il Gluing labor costs increase to $15.00 per hour LearnCo will have a loss before income tax it Gluing labor costs increase to $15.00 per hour 4. Learco's controller believes that the company can decrease its selling expenses by 10% and its administrative expenses by 15%. How much would income before income tax increase if these expense cuts are implemented? Round your answer to the nearest dollar Direct Labor Data Table Gluing Assembly 0.10 0.10 0.10 0.20 Hours required per unit: Basic abacus Deluxe abacus Labor hourly rate: Gluing Assembly Units to be produced (from Production Budget): Basic abacus Deluxe abacus $11.00 $19.00 LearnCo Direct Labor Cost Budget Total For the Year Ending December 31, 20Y2 Gluing Assembly Hours required for production: Basic abacus Deluxe abacus Total hours required Hourly rate $ Total direct labor cost $288,660