Final answer:
To calculate the amount of sales revenue reported on the budgeted income statement by Global Comfort, we need more information. If we assume the given expenses represent all costs and expenses, we can subtract the total expenses from the accounting profit to find the sales revenue.
Step-by-step explanation:
To determine the amount of sales revenue that will be reported on the budgeted income statement by Global Comfort, we need more information. The given information only provides the expenses incurred by the firm, but not the sales revenue
However, if we assume that the total expenses mentioned ($600,000 on labor, $150,000 on capital, and $200,000 on materials) represent all the costs and expenses of the firm, then we can subtract this total amount from the accounting profit to find the sales revenue.
The accounting profit can be calculated as the difference between the sales revenue and the total expenses. In this case, the accounting profit is $50,000. Therefore, the sales revenue would be $1,000,000 (accounting profit) plus $950,000 (total expenses), which equals $1,950,000.