Zulu, Inc., is preparing its master budget for the first quarter. The company sells a single product at a price of $25 per unit. Sales (in units) are forecasted at 40,000 for January, 60,000 for February, and 50,000 for March. Cost of goods sold is $14 per unit. Other expense information for the first quarter follows. Prepare a budgeted income statement for this first quarter.
|
Commissions |
10% of sales |
|
Rent |
$20,000 per month |
|
Advertising |
15% of sales |
|
Office salaries |
$75,000 per month |
|
Depreciation |
$50,000 per month |
|
Interest |
15% annually on a $250,000 note payable |
|
Tax rate |
40% |