Please answer the following question.

Please provide any formulas or explanation needed.

5. As the Managerial Accountant you are expected to create budgets for future periods. Therefore, the owners require a Budgeted Income Statement for May and June 2020. Use only the information below to assist in your calculations: (15 points) Forecasted sales-May $12,000 & June $13,600 Cost of Goods Sold-45% of sales Variables expenses- Utilities 2% of sales & Telephone 1% of sales Fixed expenses- Utilities (fixed portion) $180, Telephone (fixed portion) $200, Internet $90, & Administration $250 a. Create a Budgeted Income Statement for May and June 2020 b. What is the operating profit or loss for each of those months