Explanation The budgeted income statement of the company OW is as follows: OW Budgeted Income Statement For the month ended January 31 Sales revenue ( 1 , 500 × $ 2 , 320 ) $3,480,000 Less : Cost of Goods sold ( Manufacturing cost ) ( 1 , 500 × 1 , 420 ) $2,130,000 Gross profit $1,350,000 Variable Operating Expense ( $ 1.40 × 1500 ) : $ 2 , 100 Fixed operating expense : $7600 Less : Total operating expense $9,700 Operating Income $1,340,300 Interest Expenses $3,300 Net operating income after interest $1,337,000 Tax @ 40% $534,800 Net Income $802,200 With the help of below calculations, the income statement is prepared: Sales Revenue = Sales unit price

5th Edition

ISBN: 9780134128528

Author: Karen W. Braun, Wendy M. Tietz

Publisher: PEARSON

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Chapter 9, Problem 9.10SE

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To prepare: The budgeted income statement of the company OW.

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The budgeted income statement of the company OW.

Solution Summary: The author explains the net income after interest and tax of the company OW for the month ended January 31.

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To prepare: The budgeted income statement of the company OW.

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