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Read the requirements. Requirement 1. Prepare a budgeted income statement with columns for 400 units, 900 units, and 1,500 units sold. Flanagan Company Budgeted Income Statement For the Year Ended December 31, 2019 Unit sales 400 900 1,500 Sales Revenue Cost of Goods Sold Gross Profit Selling and Administrative Expenses Operating Income Requirement 2. How might managers use this type of budgeted income statement? The budgeted income statement prepared in Requirement 1 is a budget. It allows Flanagan's managers to plan for sales level(s). Requirement 3. How might spreadsheet software such as Excel assist in this type of analysis? V to conduct If managers have a better understanding of how ch Technology, such as Excel spreadhseet software, makes it more volume and costs are likely to V, they can Vand prepare a company's if key assumptions turn out to be wrong. Data Table Flanagan Company Budgeted Income Statement For the Year Ended December 31, 2019 Requirements Unit sales 900 $ Sales Revenue ($650 per unit) Cost of Goods Sold (70% of sales) 585,000 409,500 Gross Profit 175,500 146,250 1. Prepare a budgeted income statement with columns for 400 units, 900 units, and 1,500 units sold. 2. How might managers use this type of budgeted income statement? 3. How might spreadsheet software such as Excel assist in this type of analysis? Selling and Administrative Expenses (25% of sales) $ 29,250 Operating Income

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