Selling and Administrative Budget and Budgeted Income Statement.(The previous problem must be completed before working this problem.) Hershel’s Chocolate produces chocolate bars. Management estimates all selling and administrative costs are fixed. Quarterly selling and administrative cost estimates for the coming year follow.
a. Use the information presented previously to prepare a selling and administrative budget. Refer to the format shown in .
b. Use the information from the previous problem and from requirement a of this problem to prepare a budgeted income statement. Refer to the format shown in .
c. How will management use the information presented in the budgeted income statement?