Cumberland Inc Has the Following Information for Its First Year

question 86

Essay

Cumberland Inc has the following information for its first year of operations:
All depreciation charges are fixed and are expected to remain the same for year 2.Sales volume is expected to increase by 15%,but selling prices are expected to fall by 4%.Material costs per unit are expected to decrease by 6%.Other unit variable manufacturing costs are expected to decrease by 2.5% per unit.Fixed manufacturing costs (other than depreciation)are expected to increase by 6%.
Variable marketing costs per unit will remain constant.Administrative costs (other than depreciation)are expected to increase by 10%.
Assume there are no inventories.Cumberland operates on a cash basis.
Required: Prepare a budgeted income statement for year 2.

---

Definitions:

Interpersonal Relationship

Perception shared by two people of an ongoing interdependent connection that results in the development of relational expectations and varies in interpersonal intimacy.

Submissive Symmetrical

A type of interaction pattern where both parties adopt a less assertive or compliant stance, mirroring each other's submissive behavior.

Power Dynamics

The ways in which power is distributed and exercised within relationships, organizations, or societies, affecting interactions and outcomes.

Source Of Attraction

Factors or qualities in an individual or entity that draw interest, attention, or desire from others.