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Cymbal E-Motors is a fast-growing start-up firm that manufactures electric motors for bicycles. The following...

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Accounting

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Cymbal E-Motors is a fast-growing start-up firm that manufactures electric motors for bicycles. The following income statement is avallable for April: Sales volume is expected to increase by 30 percent in May, but the sales price is expected to fall 5 percent. Variable manufacturing costs are expected to increase by 7.5 percent per unit in May. 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 15 percent. All revenues and costs at Cymbal are cash transactions, except for depreciation. Cymbal maintains noinventories. Depreciation is fixed and is forecast to remain unchanged in the next six months. Cymbal E-Motors Budgeted Income Statement For the Month of May \begin{tabular}{|l|l|} \hline Manufacturing costs: & \\ \hline & \\ \hline & \\ \hline Total manufacturing costs & $ \\ \hline & $ \\ \hline Marketing and administrative: & \\ \hline & \\ \hline & \\ \hline & \\ \hline Total marketing and administrative costs & $ \\ \hline & $ \\ \hline \end{tabular}

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