Christy Enterprises reports the year-end information from 2018 as follows:
Christy is developing the 2019 budget.In 2019 the company would like to increase selling prices by 10%, and as a result expects a decrease in sales volume of 5%.Cost of goods sold as a percentage of sales is expected to increase to 62%.Other than depreciation, all operating costs are variable.Required:
Prepare a budgeted income statement for 2019.

Question

Christy Enterprises reports the year-end information from 2018 as follows:
  Christy is developing the 2019 budget.In 2019 the company would like to increase selling prices by 10%, and as a result expects a decrease in sales volume of 5%.Cost of goods sold as a percentage of sales is expected to increase to 62%.Other than depreciation, all operating costs are variable.Required:
Prepare a budgeted income statement for 2019.

Quizplus · Accepted Answer

The Answer of Christy Enterprises reports the year-end information from 2018 as follows:
  Christy is developing the 2019 budget.In 2019 the company would like to increase selling prices by 10%, and as a result expects a decrease in sales volume of 5%.Cost of goods sold as a percentage of sales is expected to increase to 62%.Other than depreciation, all operating costs are variable.Required:
Prepare a budgeted income statement for 2019.

Christy Enterprises Reports the Year-End Information from 2018 as Follows