Bartholomew Manufacturing Company Is Preparing the Operating Budget for the First

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 January?

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