Engleman Labs performs a specialty lab test for local companies for $45 per test. For the upcoming quarter, Engleman Labs is projecting the following sales:
________________________________________________January February March
Number of tests ..................................................................... 5,600............4,000...........5,700
The budgeted cost of performing each test is $20. Operating expenses are projected to be $59,000 in January, $56,000 in February, and $61,000 in March. Engleman Labs is subject to a corporate tax rate of 30%.
Requirement
Prepare a budgeted income statement for the first quarter, with a column for each month and for the quarter in total.