Prepare a budgeted income statement for this first quarter

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Problem - Fortune, Inc., is preparing its master budget for the first quarter. The company sells a single product at a price of $25 per unit. Sales (in units) are forecasted at 36,000 for January, 56,000 for February, and 46,000 for March. Cost of goods sold is $12 per unit. Other expense information for the first quarter follows.

Commissions 8% of sales dollars  Rent$15,000  per month  Advertising 10% of sales dollars  Office salaries$79,000  per month  Depreciation$53,000  per month  Interest 13% annually on a $270,000 note payable  Tax rate 40% 

Required - Prepare a budgeted income statement for this first quarter.

Reference no: EM131601002

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