Rucker Company prepared the following budgeted income statement for 2019:
RUCKER COMPANY
Budgeted Income Statement
For the Year Ended December 31, 2019
Unit Sales ......................................................... 1,300
Sales Revenue ($400 per unit) ............................. $ 520,000
Cost of Goods Sold (45% of sales) ......................... 234,000
Gross Profit .................................................... 286,000
Selling and Administrative Expenses (10% of sales) ...... 52,000
Operating Income .......................................... $ 234,000
Requirements
1. Prepare a budgeted income statement with columns for 700 units, 1,300 units, and 1,700 units sold.
2. How might managers use this type of budgeted income statement?
3. How might spreadsheet software such as Excel assist in this type of analysis?