What is the budgeted fixed operating expense for 20X4?
(Use the following data to answer this question)
Question 6 options:
Balance Sheet ASSETS 12/31/20 X3 Cash 00,000 Account Receivable 250,000 Unde rbillings 250,000 Other Current Assets 00,000 Total Current Asset 700,000 Equipment (Gross) 200,000 Accumulated Depreciation 100,000 Equipment (Net) 100,000 Total Assets 800,000 EQUITIES Account Payable 300,000 Overbillings 200,000 Other Current Liability 150,000 Total Current Liability 650,000 Long Term Debt 50,000 Total Liability 700,000 Net Worth 100,000 Total Eq uities 800,000 ncome Statements (12/31/20X3) Earnings 600,000 Cost of Construction Labor 80,000 Material 80,000 Subcontracts 60,000 320,000 Equipment Job Overhead 32,000 Total Direct Cost 1472,000 Gross Profit 128,000 Variable Operating Expense 48,000 Fixed Operating Expense 75,000 Net Profit 5,000 Other Budget Data for 20X4: 1. Minimum return on investment goal is 20% 2. Anticipated increase in fixed operating expenses forthe budgeted period is $20,000. 3. Labor is to decrease by 5% of earnings 4. No other changes to cost structure. 5. No planned changes in operating or project policy. 6. Maximum company market share is $2,000,000. 7. Bonding capacity is $1,500,000 Balance Sheet ASSETS 12/31/20 X3 Cash 00,000 Account Receivable 250,000 Unde rbillings 250,000 Other Current Assets 00,000 Total Current Asset 700,000 Equipment (Gross) 200,000 Accumulated Depreciation 100,000 Equipment (Net) 100,000 Total Assets 800,000 EQUITIES Account Payable 300,000 Overbillings 200,000 Other Current Liability 150,000 Total Current Liability 650,000 Long Term Debt 50,000 Total Liability 700,000 Net Worth 100,000 Total Eq uities 800,000 ncome Statements (12/31/20X3) Earnings 600,000 Cost of Construction Labor 80,000 Material 80,000 Subcontracts 60,000 320,000 Equipment Job Overhead 32,000 Total Direct Cost 1472,000 Gross Profit 128,000 Variable Operating Expense 48,000 Fixed Operating Expense 75,000 Net Profit 5,000 Other Budget Data for 20X4: 1. Minimum return on investment goal is 20% 2. Anticipated increase in fixed operating expenses forthe budgeted period is $20,000. 3. Labor is to decrease by 5% of earnings 4. No other changes to cost structure. 5. No planned changes in operating or project policy. 6. Maximum company market share is $2,000,000. 7. Bonding capacity is $1,500,000