Fortune, 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 45,000 for January, 55,000 for February, and 50,000 for March. Cost of goods sold is $ 14 per unit. Other expense information for the first quarter follows. Pre-pare a budgeted income statement for this first quarter.
Commissions . . . . . . . . . 8% of sales
Rent . . . . . . . . . . . . . . . . $ 14,000 per month
Advertising . . . . . . . . . . 15% of sales
Office salaries . . . . . . . . $ 75,000 per month
Depreciation . . . . . . . . . $ 40,000 per month
Interest . . . . . . . . . . . . . 15% annually on a $ 250,000 note payable
Tax rate . . . . . . . . . . . . . 30%