Christy Enterprises Reports the Year-End Information from 2011 as Follows

Essay

Christy Enterprises reports the year-end information from 2011 as follows:
Christy is developing the 2012 budget. In 2012 the company would like to increase selling prices by 10%, and as a result expects a decrease in sales volume of 5%. Cost of goods sold as a percentage of sales is expected to increase to 62%. Other than depreciation, all operating costs are variable.
Required:
Prepare a budgeted income statement for 2012.