Year to
	Date
Revenue	7,692,700.00
Direct Labor Costs	2,154,887.00
Direct Materials Costs	3,322,900.00
Contribution Margin	2,214,913.00
Fixed Advertising Costs	321,548.00
Fixed Building Costs	987,456.00
Total Fixed Costs	1,309,004.00
Net Income	905,909.00
Jones Corp has decided to implement a budget and the budget will
be created based upon the following assumptions:
1. The items produced and sold are expected to decrease by 3%
2. The price of the items sold will increase by 4%
3. Direct labor costs are expected to increase by 4%
4. Building costs will not change
5. The company has decided to increase the advertising budget by 10%
6. The company has decided to be more aggressive in buying inventory and feel it will cause the direct
materials cost to decrease by 3%
What will be the budgeted Net Income or (Loss) based upon the assumptions given?
(indicate if the figure is a net income or a net loss)