Financial and Managerial Accounting: E22-32 Bolden Company prepared the following budgeted income

Financial and Managerial Accounting

E22-32 Using sensitivity analysis
Bolden Company prepared the following budgeted income statement for 2017:
Bolden Company
Budgeted Income Statement
For the Year Endd December 31, 2017
Units sales 1,400
Sales revenue ($700 per unit) 980,000
Cost of goods sold (55% of sales) 539,000
Gross profit 441,000
Selling and administrative expense (35% of sales) 343,000
Operating Income $98,000

Requirements
1. Prepare a budgeted income statement with columns for 1,300 units, 1,400 units, and 1,600 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?
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