Reference no: EM132461516

MBA 640 Managerial Accounting Assignment - Lynn University, USA

Problem - The following information is available for 2019 for Dragon Products:

Revenue (100,000 units)	$900,000
Manufacturing costs:
Materials	60,000
Variable overhead cash costs	50,000
Fixed overhead cash costs	100,000
Depreciation	250,000
Marketing and administrative costs:
Variable marketing cash costs	100,000
Marketing depreciation	50,000
Administrative cash costs	130,000
Administrative depreciation	20,000
Total costs	$760,000
Operating income	$140,000

All depreciation charges are expected to remain the same for 2020. Sales volume is expected to increase by 30 percent, but prices are expected to fall by 5 percent. Material costs are expected to decrease by 5 percent. Variable manufacturing overhead cash costs are expected to decrease by 3 percent. Fixed manufacturing overhead cash costs are expected to increase by 5 percent.

Variable marketing cash costs change with volume. Administrative cash costs are expected to increase by 10 percent. Inventories are kept at zero.

Required - Prepare Budgeted income statement for 2020. Round budget line items to the nearest dollar.