UF U Complete) nferencing products. Maintaining the videoconferencing equipment is an important area of customer satisfact ament to suffer, leading to a decline in Easecom's financial performance. The following income statement shc 18 budg Requirements - mentfo 1. Prepare a budgeted income statement for the year ending December 31, 2018. 2. How well does the budget align with Easecom's strategy? 3. How does preparing the budget help Easecom's management team better manage the company? 18 Print Done Check Answer. 8 of 8 (6 complete) i Data Table of vid omd tate ing Easecom Company Income Statement for the Year Ended December 31, 2017 (in thousands) on. Revenues: Equipment Maintenance contracts Total revenues $ 7,000 1,200 on an er 8,200 4,200 4,000 Cost of goods sold Gross margin Operating costs Marketing Distribution Customer maintenance 690 150 1.100 th Print Done Complete) i Data Table -X Maintenance contracts Total revenues 1,200 $ 8,200 4,200 4,000 Cost of goods sold Gross margin Operating costs Marketing Distribution Customer maintenance 690 150 1,100 920 Administration 2,860 Total operating costs $ 1,140 Operating income Print Done 18 16 complete) conferend egment nt.) i More Info X isfaction. A recen ht shows results f 2018 bud 1. 2. atement 3. 4. Selling prices of equipment are expected to increase by 10% as the economic recovery begins. The selling price of each maintenance contract is expected to remain unchanged from 2017 Equipment sales in units are expected to increase by 4%, with a corresponding 4% growth in units of maintenance contracts. Cost of each unit sold is expected to increase by 5% to pay for the necessary technology and quality improvements. Marketing costs are expected to increase by $250,000, but administration costs are expected to remain at 2017 levels. Distribution costs vary in proportion to the number of units of equipment sold. Two maintenance technicians are to be hired at a total cost of $180,000, which covers wages and related travel costs. The objective is to improve customer service and shorten response time. There is no beginning or ending inventory of equipment. 2018 5. 6. 7. ick Che Print Done Clear All HW Score: 47.5%, 38 of 80 P6-38 (similar to) Question Help Easecom Company is a manufacturer of videoconferencing products. Maintaining the videoconferencing equipment is an important area of customer satisfaction A recent down in the computer industry has caused the videoconferencing equipment segment to suffer, leading to a decline in Easecom's financial performance. The following income statement shows for 2017 (Click the icon to view the income statement.) Easecom's management team is preparing the 2018 budget and is studying the folowing information (Click the icon to view the information) Read the requirements
