What is budgeted operating income

Assignment Help Accounting Basics

Reference no: EM13159972

Katie Enterprises reports the year-end information from 20X8 as follows: Sales (70,000 units) $560,000 Cost of goods sold 210,000 Gross margin 350,000 Operating expenses 200,000 Operating income $ 150,000. Katie is developing the 20X9 budget. In 20X9 the company would like to increase selling prices by 4%, and as a result expects a decrease in sales volume of 10%. All other operating expenses are expected to remain constant. Assume that COGS is a variable cost and that operating expenses are a fixed cost. What is budgeted operating income for 20X9?

Reference no: EM13159972

Questions Cloud

The centroid and the cluster : Problem 1. For the following set of points, the initial centroid, and the cutoff distance of 4, do the following operations: 1) find the clusters; 2) update the centroid value; 3) find the distance between the centroid and the cluster, and update th..

What is the ph of a solution prepared : What is the pH of a solution prepared by mixing 25.00 mL of a 0.10 M solution of the weak acid CH3CO2H with 25.00 mL of 0.040 M sodium acetate, CH3CO2Na? Assume that the volume of the solutions are additive and that Ka = 1.8 ?* 10-5 for CH3CO2H.

Size of the ozone hole centered : Explain why the size of the ozone hole centered over Antarctica has increased over the past 30 years. What changes occurred since the implementation of the Montreal Protocol?

Explain how the quantity of executives demanded : Explain how the quantity of executives demanded, the quantity supplied, and executive pay will change based on the above statement.

What is budgeted operating income : Assume that COGS is a variable cost and that operating expenses are a fixed cost. What is budgeted operating income for 20X9?

State the temperature of the entire system rose : The temperature of the entire system rose from 25.30 °C to 26.59 °C. Calculate the heat of reaction, in kJ, per mole of KOH(aq).

Estimate the cost of the receivables loan : Estimate the cost of the receivables loan to Johnson when the firm borrows the $300,000. The prime rate is currently 11 percent.

Calculate the mass of water produced : Calculate the mass of H2O produced when 12.0 g of glucose is combusted in a container of oxygen with a volume of 1.3 L at a pressure of 2.2 atm and a temperature of 205 °C.

Concepts of goffman theory of dramaturgy : What is the main ideas and concepts of Goffman's theory of dramaturgy

User Account

All Pages