Chapter 9, Problem 9.26AE

Budgeted income statement (Learning Objective 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:

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%.