PROBLEM 7-E BUDGETED OPERATING INCOME Janniel Inc. is preparing its budget for 2016. Income statement for 2015 is presented below: Sales (100,000 units) EDI P1,000,000 Cost of sales 600,000 Gross...

PROBLEM 7-E BUDGETED OPERATING INCOME<br>Janniel Inc. is preparing its budget for 2016. Income statement for 2015 is presented<br>below:<br>Sales (100,000 units)<br>EDI<br>P1,000,000<br>Cost of sales<br>600,000<br>Gross Profit<br>P400,000<br>Operating expenses<br>240,000<br>Operating Income<br>P160,000<br>Operating expenses includes depreciation of P40,000. For the year 2016, the company plans to<br>increase selling price by 10% which is expected to decrease sales volume in units by 5%. The<br>cost of sales as a percent of sales will increase to 62%. Other than depreciation, all operating<br>costs are variable.<br>Required:<br>What is the budgeted income for 2016?<br>

Extracted text: PROBLEM 7-E BUDGETED OPERATING INCOME Janniel Inc. is preparing its budget for 2016. Income statement for 2015 is presented below: Sales (100,000 units) EDI P1,000,000 Cost of sales 600,000 Gross Profit P400,000 Operating expenses 240,000 Operating Income P160,000 Operating expenses includes depreciation of P40,000. For the year 2016, the company plans to increase selling price by 10% which is expected to decrease sales volume in units by 5%. The cost of sales as a percent of sales will increase to 62%. Other than depreciation, all operating costs are variable. Required: What is the budgeted income for 2016?

Jun 07, 2022

SOLUTION.PDF

PROBLEM 7-E BUDGETED OPERATING INCOME Janniel Inc. is preparing its budget for 2016. Income statement for 2015 is presented below: Sales (100,000 units) EDI P1,000,000 Cost of sales 600,000 Gross...

Get Answer To This Question

Related Questions & Answers

Submit New Assignment