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

Managerial Accounting, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (5th Edition)

5th Edition

ISBN: 9780134642093

Author: Karen W. Braun, Wendy M. Tietz

Publisher: PEARSON

See similar textbooks

Concept explainers

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…

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…

Videos

Question

Chapter 9, Problem 9.10SE

To determine

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

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Chapter 9, Problem 9.9SE

Chapter 9, Problem 9.11SE

Students have asked these similar questions

Calculate total assets at the year end..

If annual demand is 60,000 units, the ordering cost is $30 per order, and the holding cost is $6 per unit per year, what is the optimal order quantity using the fixed-order quantity model?

correct answer

Chapter 9 Solutions

Managerial Accounting, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (5th Edition)

Ch. 9 - (Learning Objective 1) Which term describes the...Ch. 9 - (Learning Objective 1) Benefits of budgeting...Ch. 9 - Prob. 3QC Ch. 9 - Prob. 4QC Ch. 9 - Prob. 5QC Ch. 9 - Prob. 6QC Ch. 9 - Prob. 7QC Ch. 9 - Prob. 8QC Ch. 9 - Prob. 9QC Ch. 9 - Prob. 10QC

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

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.

Concept explainers

Videos

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

Want to see the full answer?

Chapter 9 Solutions