1. Martin Corporation expects sales to be $2,400,000 next year and for sales to grow at 10% for two additional years. Martin expects variable costs to be 50% of that year's sales and fixed cost to be $340,000 for each of the next three years. Taxes will be 28% of operating profit. Please prepare a budgeted income statement for the next three years. With explanation.
2. At the beginning of the year Myles Corporations assembled a budget calling for sales of 50,000 units. After the year is over, Myles Corporation closed the books and recorded sales of 45,000 units.Using the data below, assemble a static budget and flexible budget for Myles using the projected and actual sales units.