Rhodes, Inc., is a fast-growing start-up firm that manufactures bicycles. The following income statement is available for July:

Revenues (220 units @ $520 per unit)	$	114,400
Less
Manufacturing costs
Variable costs		14,000
Depreciation (fixed)		14,400
Marketing and administrative costs
Fixed costs (cash)		37,200
Depreciation (fixed)		13,100
Total costs	$	78,700
Operating profits	$	35,700

Sales volume is expected to increase by 20 percent in August, but the sales price is expected to fall 10 percent. Variable manufacturing costs are expected to increase by 3 percent per unit in August. In addition to these cost changes, variable manufacturing costs also will change with sales volume. Marketing and administrative cash costs are expected to increase by 10 percent.

Rhodes operates on a cash basis and maintains no inventories. Depreciation is fixed and should remain unchanged over the next three years.

Required:

Prepare a budgeted income statement for August. (Do not round intermediate calculations. Input all amounts as positive values. Round your answers to the nearest dollar amount. Omit the "$" sign in your response.)

Rhodes, Inc. Budgeted Income Statement August
(Click to select)Liability insuranceContribution marginVariable expensesRevenuesDepreciation	$
Less:
Manufacturing costs:
(Click to select)VariableLiability insuranceRevenuesFixed costs Depreciation	$
(Click to select)Liability insurance depreciation Fixed costs RevenuesVariable
Total manufacturing costs	$
(Click to select)Gross profitGross loss	$
Less:
Marketing and Administrative:
(Click to select)RevenuesContribution marginDepreciationFixed costs Variable	$
(Click to select)DepreciationRevenuesVariableContribution marginFixed costs
Total marketing and administrative costs	$
(Click to select)Operating profit operating loss	$

Answer rating: 100% (QA)

Rhodes Inc Budgeted Income Statement August Particulars Amount Calculation Revenues A ... View the full answer