Kaizen-Based Budget Income Statement
Not what you're looking for?
Allscott Company is develop'lllg its budgets for 19x5 and, for the first time, will use the Kaizen approach. The initial 19x5 income statement, based on static data from 19x4, is as follows:
Sales (140,000 units)__________________$420,000
Less: cost of goods sold________________280.000
Gross margin___________________________$140,000
Operating expenses
(includes $28,000 of depreciation)_____112,000
Net income_____________________________$28.000
Selling prices for 19x5 are expected to increase by 8 percent, and sales volume in units will decrease by 10 percent. The cost of goods sold as estimated by the Kaizen approach will decline by 10 percent per unit. Other than depreciation, all other operating costs are expected to decline by 5 percent.
Prepare a Kaizen-based budgeted income statement for 19x5.
Purchase this Solution
Solution Summary
This solution provides a Kaizen-based budget income statement.
Solution Preview
Kaizen-based budgeted income statement
Sales (126,000 ?$3.24) ...
Purchase this Solution
Free BrainMass Quizzes
Operations Management
This quiz tests a student's knowledge about Operations Management
Writing Business Plans
This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.
Paradigms and Frameworks of Management Research
This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.
Basics of corporate finance
These questions will test you on your knowledge of finance.
Team Development Strategies
This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.