cornerstone 8.10 What if uly to 2,600 per month? How would that affect monthly a

Question

cornerstone 8.10

What if uly to 2,600 per month? How would that affect monthly administrative expenise hat if Green Earth Landscaping Company's insurance rates increased at the beginning of ercise 8.10 Budgeted Income Statement OBJECTIVE as Jewelry Company makes and sells costume jewelry. For the coming year, Coral Seas es of $15.9 million and cost of goods sold of $8.75 million. Advertising is a key part Seas' business strategy, and total marketing expense for the year is budgeted at $2.8 oral I Se expects sales of ion. Total administrative expenses are expected to be $675,000. Coral Seas has no interest. e. Income taxes are paid at the rate of 40 percent of operating income. Required: Construct a budgeted income statement for Coral Seas Jewelry Company for the coming year tha uear What effect would

Explanation / Answer

Answer:-

Budgeted Income Statement Particulars Amount $ (in million) Sales 15.9 Less:- Cost of goods sold 8.75 Gross profit 7.15 Less:-Variable expenses Marketing expense 2.8 Administrative expense 0.675 Opreating income 3.675 Less:- Income tax 40% 1.47 Net Income 2.205

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