Answer the Following Question(s)using the Information Below

question 31

Essay

Answer the following question(s)using the information below.Sherry and John Enterprises are using the Kaizen approach to budgeting for 2019.The budgeted income statement for January 2019 is as follows:
Under the Kaizen approach, cost of goods sold and variable operating expenses are budgeted to decline by 1% per month.
-Stark Company is developing its budgets for 2019 and for the first time will use the Kaizen approach.The initial 2019 income statement, based on static data from 2018 is as follows:
Selling prices for 2019 are expected to increase by 6 percent, and sales volume in units will decrease by 10 percent.The cost of goods sold as estimated by the Kaizen approach will decline by 10 percent per unit.Other than amortization, all other operating costs are expected to decline by 5 percent.Required:
Prepare a Kaizen-based budgeted income statement for 2019.

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Definitions:

Mainstreaming

The practice of placing children with special education needs in regular classrooms for at least part of the day.

Phonological Disorder

A phonological disorder is a type of speech sound disorder characterized by patterns of error in sound use, making it difficult for speakers to be understood within their language community.

Expressive Language Disorder

A communication disorder in which a person has difficulty expressing themselves using oral language.

Articulating Sounds

The physical process of producing clear and distinct sounds or syllables as part of speech.