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Sherry and John Enterprises are using the kaizen approach to budgeting for 2018. The budgeted income statement for January 2018 is as follows: $1,070,000 690,000
Sherry and John Enterprises are using the kaizen approach to budgeting for 2018. The budgeted income statement for January 2018 is as follows: $1,070,000 690,000 380,000 Sales (168,000 units) Less: Cost of goods sold Gross margin Operating expenses (includes $50,000 of fixed costs) Operating income 300,000 $80,000 Under the kaizen approach, cost of goods sold and variable operating expenses are budgeted to decline by 2% per month. What is the budgeted operating income for March 2018? O A. $295,000 OB. $143,800 OC. $117,224 OD. $676,200
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