North Company has completed all of its operating budgets. The sales budget for the year shows 50,820 units and total sales of $2,391,000. The total unit cost of making one unit of sales is $23. Selling and administrative expenses are expected to be $303,100. Interest is estimated to be $13,060. Income taxes are estimated to be $220,400. Required:
Prepare a budgeted multiple-step income statement for the year ending December 31, 2017.

  Sales        2,250,000

Explanation:  

variable cost                      1,250,000

25 x 50,000

Gross Profit                      1,000,000

Fixed Cost

Selling & Administrative    300,000

Operating income         700,000

interest expense

10,000

non- controllable expenses 10,000

non-controllable income   690,000

income taxes                      200,000

net income                        490,000

Explanation:

the interest expense is not part of the operating cost, those cost are not part of the business activity. It is on the non-controllable expenses

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