P6-33

SMARTVIDEO COMPANY
Budgeted Income Statement for 2014
(in thousands)
Revenues
Equipment ($8000 x 1.1 x 1.06)
Maintenance Contracts ($1900 x 1.06)
Total Revenues
342
Cost of Goods Sold ($4000 x 1.05 x 1.06)
( 4 452)
Gross Margin
890
Operating Costs
Marketing
Distribution
Customer Maintenance
Administration
Total Operating Costs
206)
Operating Income

$9 328
2 014
$ 11

6
$920
106
1 260
920
(3
$ 3 684