Problem 1-6 points The following table shows Brand\'s income statement for 2017

Question

Problem 1-6 points The following table shows Brand's income statement for 2017 2017 2018 Sales revenue (2,000 units @$200 per un) $2.000,000 Less: Manufacturing costs Variable manufacturing costs 700,000 100,000 Marketing and administrative costs Variable cash costs 300,000 Fixed cash costs 128,000 Total costs Operating prof Brand is preparing its master budget for 2018. Using the blowing ?brmation, prepare Brands $1.262.000 $733.000 2018 budgeted income statement. Show your caloulations Sales volume is expected to increase by 10% as a result of a 15% decrease in Seling price. variable manufacturing costs per unitare expected to increase by 5%. Additional manufacturing assets to be purchased in January 2018 will have a $60,000 cost 15 year Ife and no salvage value Variable marketing and administrative costs penni are opected to decrease by 8%. . Fixed cash costs are expectod to be $130,000. . Depreciation on marketing and administrative assets will not change

Explanation / Answer

Solution 1:

Note: As Multiple questions are posted, i have answered first question as per chegg policy, kindly post separate question for answer of remaining questions.

Budgeted income statement of Brand For the year ended 2018 Particulars Amount Sales Revenue (2000*110%*$1000*85%) $1,870,000.00 Less: Manufacturing costs: Variable manufacturing costs (700000/2000*105%*2200) $808,500.00 Depreciation (Fixed) ($100,000 + $4,000) $104,000.00 Marketing and administrative costs: Variable cash costs ($300,000/2000*108%*2200) $356,400.00 Fixed cash costs $130,000.00 Depreciation $34,000.00 Total costs $1,432,900.00 Operating profit $437,100.00

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.