Steve Corporation Is Using the Kaizen Approach to Budgeting for 2018

Essay

Steve Corporation is using the kaizen approach to budgeting for 2018. The budgeted income statement for January 2018 is as follows:

Under the kaizen approach, cost of goods sold and variable operating expenses are budgeted to decline by 1% per month.
Required:
Prepare a kaizen-based budgeted income statement for March of 2018.