Costs and relevant information that are assumed

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Cost Classification: The Lee's have provided you with the following costs and relevant information that are assumed for year 20XY.

Prepare budgeted income statement, assuming 600 units to be produced and sold, a per unit selling price of $85, an income tax rate of 28% and the following information

a. Cost of goods sold of $35 per unit

b. Labor = $400/month

i. One part-time employee will be hired to take care of packaging and shipping. This employee will be paid $10 per hour. He or she is estimated to work 40 hours total per month.

c. Advertising fees = $3,000

d. Bank fees = $200

e. Phone/internet = $150 per month

f. Shipping = $3 per unit

g. Utilities = $100 per month

h. Office Supplies = $900

i. Conference Exhibitor Fee = $3000

j. Travel Expenses for Conference (e.g. airfare, meals, taxi) = $1200

Reference no: EM131721472

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