Allscott Company is developing its budgets for 2012 and,for the first time,they will use the Kaizen approach.The initial 2012 income statement,based on static data from 2011,is as follows:

Selling prices for 2012 are expected to increase by 8%, and sales volume in units will decrease by 10%. The cost of goods sold as estimated by the Kaizen approach will decline by 10% per unit. Other than depreciation, all other operating costs are expected to decline by 5%.
Required:
Prepare a Kaizen-based budgeted income statement for the year ended December 31,2012.

Question

Allscott Company is developing its budgets for 2012 and,for the first time,they will use the Kaizen approach.The initial 2012 income statement,based on static data from 2011,is as follows:

Selling prices for 2012 are expected to increase by 8%, and sales volume in units will decrease by 10%. The cost of goods sold as estimated by the Kaizen approach will decline by 10% per unit. Other than depreciation, all other operating costs are expected to decline by 5%.
Required:
Prepare a Kaizen-based budgeted income statement for the year ended December 31,2012.

Quizplus · Accepted Answer

The Answer of Allscott Company is developing its budgets for 2012 and,for the first time,they will use the Kaizen approach.The initial 2012 income statement,based on static data from 2011,is as follows:

Selling prices for 2012 are expected to increase by 8%, and sales volume in units will decrease by 10%. The cost of goods sold as estimated by the Kaizen approach will decline by 10% per unit. Other than depreciation, all other operating costs are expected to decline by 5%.
Required:
Prepare a Kaizen-based budgeted income statement for the year ended December 31,2012.

Allscott Company Is Developing Its Budgets for 2012 And,for the First