Bartholomew Manufacturing Company Is Preparing the Operating Budget for the First

question 23

Multiple Choice

Bartholomew Manufacturing Company is preparing the operating budget for the first quarter of 2013. They forecast sales of $50 000 in January, $60 000 in February, and $70 000 in March. Cost of sales is budgeted at 40% of Sales. Variable and fixed expenses are as follows: Variable: Miscellaneous expenses : 20% of Sales Fixed: Salary expense: $11 000 per month
Rent expense: $5 000 per month Depreciation expense: $1 200 per month
Miscellaneous expenses/fixed portion: $3 300 per month
How much is the operating net profit/(loss) for March?

• A)($500)
• B)$1 450
• C)$3 500
• D)$7 500

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Definitions:

Comprehensive Income

The total change in equity for a reporting period other than from transactions with owners, including all revenues, gains, expenses, and losses.

Bonus Issue

An issue of shares to existing shareholders in proportion to their current shareholdings at no cost to the shareholders.

Ordinary Shares

Equity shares that represent a portion of a company's capital, entitling holders to vote and share in the profits.

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a data set, giving more weight to some values.