Use the Following Information for the Next 4 Questions

question 120

Multiple Choice

Use the following information for the next 4 questions.
TNR Corporation is preparing its budgeted income statement for the month of August. Budgeted sales are $18,000. Cost of goods sold is twice the amount of operating costs, and operating costs plus cost of goods sold equals 40% of net income. Return on sales (net income / sales) is anticipated to be 50%. TNR does not have any nonoperating items on its income statement.
-TNR's budgeted operating income will be

• A) $9,000
• B) $15,600
• C) $14,400
• D) None of the above

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