Bartholomew Manufacturing Company is preparing the operating budget for the first quarter of 2013. They forecast sales of $50 000 in January, $60 000 in February, and $70 000 in March. Cost of sales is budgeted at 40% of Sales. Variable and fixed expenses are as follows: Variable: Miscellaneous expenses : 20% of Sales Fixed: Salary expense: $11 000 per month
Rent expense: $5 000 per month
Depreciation expense: $1 200 per month
Miscellaneous expenses/fixed portion: $3 300 per month
How much is the operating net profit/(loss)for January?
A)$3 500
B)($500)
C)$1 450
D)$7 500

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The Answer of Bartholomew Manufacturing Company is preparing the operating budget for the first quarter of 2013. They forecast sales of $50 000 in January, $60 000 in February, and $70 000 in March. Cost of sales is budgeted at 40% of Sales. Variable and fixed expenses are as follows: Variable: Miscellaneous expenses : 20% of Sales Fixed: Salary expense: $11 000 per month
Rent expense: $5 000 per month
Depreciation expense: $1 200 per month
Miscellaneous expenses/fixed portion: $3 300 per month
How much is the operating net profit/(loss)for January?
A)$3 500
B)($500)
C)$1 450
D)$7 500

Bartholomew Manufacturing Company Is Preparing the Operating Budget for the First