Brandy Sonney manufactures a specialty precision scale. For January, the company expects to sell 1,400 scales at an average price of $2,340 per unit. The average manufacturing cost of each unit sold is $1,410 Variable operating expenses for the company will be $1.10 per unit sold and fixed operating expenses are expected to be $7,300 for the month. Monthly interest expense is $3,200 The company has a tax rate of 30% of income before taxes. Prepare Brandy Sonney's budgeted income statement for January Brandy Sonney Budgeted Income Statement For the Month Ended January 31 Sales Less: Cost of goods sold Gross profit Less: Operating expenses, variable portion Less: Operating expenses, fixed portion Operating income Less: Interest expense Less: Income tax expense Net income
Brandy Sonney manufactures a specialty precision scale. For January, the company expects to sell 1,400 scales at an average price of $2,340 per unit. The average manufacturing cost of each unit sold is $1,410 Variable operating expenses for the company will be $1.10 per unit sold and fixed operating expenses are expected to be $7,300 for the month. Monthly interest expense is $3,200 The company has a tax rate of 30% of income before taxes. Prepare Brandy Sonney's budgeted income statement for January Brandy Sonney Budgeted Income Statement For the Month Ended January 31 Sales Less: Cost of goods sold Gross profit Less: Operating expenses, variable portion Less: Operating expenses, fixed portion Operating income Less: Interest expense Less: Income tax expense Net income
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Brandy Sonney manufactures a specialty precision scale. For January, the company expects to sell 1,400 scales at an average price of $2,340 per unit. The average manufacturing cost of each unit
sold is $1,410. Variable operating expenses for the company will be $1.10 per unit sold and fixed operating expenses are expected to be $7,300 for the month. Monthly interest expense is $3,200
The company has a tax rate of 30% of income before taxes. Prepare Brandy Sonney's budgeted income statement for January
Brandy Sonney
Budgeted Income Statement
For the Month Ended January 31
Sales
Less: Cost of goods sold
Gross profit
Less: Operating expenses, variable portion
Less: Operating expenses, fixed portion
Operating income
Less: Interest expense
Less: Income tax expense
Net income
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