Sales: 50,000 units, unit selling price $95

Cost of one (1) unit:

Direct materials: 3 pounds at $2 per pound

Direct labor: 2 hours at $20 per hour

Manufacturing overhead: $10 per direct labor hour

Selling and administrative expenses: $135,000

Interest expense: $75,000

Income taxes: 40% of income before taxes

Budgeted Income Statement Sales Cost of Goods Sold Gross Profit Selling \& Administrative Expenses Income from Operations Interest Expense Income before taxes Income Tax Expense Net Income