(Answered) Question zulu inc is preparing its master budget for the

Accounting

Question: 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%

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