Wisconsin Booksellers is planning a budget for 2015. The estimate of sales revenue is $1,400,000 and of cost of goods sold is 70 percent of sales revenue. Depreciation on the office building and fixtures is budgeted at $50,000. Salaries and wages are budgeted at $90,000. Advertising has been budgeted at $80,000, and utilities should amount to $60,000. Income tax is estimated at 40 percent of operating income
Required
a. Prepare a budgeted income statement for 2015.
b. Assuming management desired an after-tax income of $100,000, determine the necessary sales volume