Purpose a budgeted income statement

Assignment Help Financial Accounting

Reference no: EM139965

Mega Corporation reported the following year end information for 2008:

Sales (100,000)	$250,000
Less: Cost of Goods sold	150,000
Gross profit	100,000
Operating expenses
(includes 10,000 of depreciation)	60,000
Operating income	40,000

Mega is developing the budget for 2009. In 2009 the company would like to increase selling prices by 15% and as a result expects a decrease in sales volume of 8%. Mega is looking to use the Kaizen approach to budgeting in 2009. Under the kaizen approach, cost of goods sold and variable operating expenses would be budgeted to decline by one percent without considering any changes in sales. Other than depreciation, all operating costs are variable.

A) Prepare a budgeted income statement for 2009

B) Should mega change the selling price?

Reference no: EM139965

Questions Cloud

Posthypnotic amnesia concept : Posthypnotic amnesia refers to the hypnotic subjects’ inability to recall:

Evaluate owner''s equity at the end of 2008 and 2009 : Evaluate owner's equity at the end of 2008 and 2009? and If Nobel paid dividends of $100 in 2009, and made no stock issues. what must have been net income during the year?

Important difference in providing customer benefits : Elucidate how are core competencies giving the organization an important difference in providing customer benefits also perceived value.

Division of consciousness : The view that deeply hypnotized people experience a division of their consciousness is known as:

Purpose a budgeted income statement : Purpose a budgeted income statement for 2009 and Should mega change the selling price?

Effective management and decision-making : Discuss with a case study in any activity as their effective management and decision-making have an impact on organizational success?

Adverse selection also the individual mandate : Adverse Selection also the Individual Mandate also The Requirements to Buy Coverage under the Affordable Care Act.

Evaluate the unit product cost for each month : Evaluate the unit product cost for each month using the absorption, variable and throughput costing approaches. Purpose an income statement for November using the variable costing approach

Conclude the magnitude of velocity of each fragment : A skier, weighing 453 n, is skiing down a slope that has an incline of 29 degrees above the horizontal. Compute the acceleration of the skier (coefficient of kinetic friction between the skis and snow is 0.21)

User Account

All Pages