2) Delta Labs performs a specialty lab test for local companies for $45 per test. For the upcoming quarter, Delta Labs is projecting the following sales: January February March Number of lab tests 5,600 4,900 5,700 The budgeted cost of performing each test is $21. Operating expenses are projected to be $59,000 in January, $57,000 in February, and $58,000 in March. Delta Labs is subject to a corporate tax rate of 30%. Requirement Prepare a budgeted income statement for the first quarter, with a column for each month
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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