Question

Preparing a Budgeted Income Statement Jameson Company provided the following information for the coming year: Units produced and sold 230,000 Cost of goods sold per unit $5.30 Selling price $9.70 Variable selling and administrative expenses per unit $1.60 Fixed selling and administrative expenses $387,000 Tax rate 35%

Answer 1

Instructios are below.

Step-by-step explanation:

Giving the following information:

Units produced and sold 230,000

Cost of goods sold per unit $5.30

Selling price $9.70

Variable selling and administrative expenses per unit $1.60

Fixed selling and administrative expenses $387,000

Tax rate 35%

Income statement:

Sales= 230,000*9.7= 2,231,000

COGS= 230,000*5.3= (1,219,000)

Gross profit= 1,012,000

Variable selling and administrative=(1.60*230,000)= (368,000)

Fixed selling and administrative= (387,000)

Earnings before taxes= 257,000

Tax= (257,000*0.35)= (89,950)

Net operating profit= 167,050