Question $1$

Fortune, Inc. is preparing its master budget for the first quarter. The company sells a single product at a price of $$25$ per unit. Sales $($in units$)$ are budgeted at $150,000$ for the first quarter. Cost of goods sold is $$14$ per unit. Other expense information for the first quarter can be obtained from your text Answer the following questions for the budgeted income statement for the first quarter ended March $31.$ Round expense amount to the nearest dollar.

The amount of Gross Profit is

Integer, decimal, or E notation allowed

Question $2$

Sales commission expense would be valued at

$$12,000$

$$300,000$

$$562,500$

None of the above

Question $3$

$1$ Point

If interest expense was $$3,125($calculated as $$250,0001\mathrm{.}25\%),$ Income before income taxes must have been

$$1,252,625$

$$397,375$

$$119,213$

$($D$)$ $$1,650,000$

Question $4$

If income tax expense was $$119,213,$ then net income must have been

$$2,100,000$

$$562,500$

$$1,252,625$

$$120,000$

$$278,162$