The Monteiro Manufacturing Corporation manufactures and sells folding umbrellas. The corporation’s condensed income statement for the year ended December 31, 2011, follows:.transtutors.com/Transtutors001/Images/Transtutors001_4ced0acc-ce36-47fd-8ae8-36f2fbd91f26.PNG”>Monteiro’s budget committee has estimated the following changes for 2012:30% increase in number of units sold20% increase in material cost per unit15% increase in direct labor cost per unit10% increase in variable indirect cost per unit5% increase in indirect fixed costs8% increase in selling expenses, arising solely from increased volume6% increase in administrative expenses, reflecting anticipated higher wage and supply price levelsAny changes in administrative expenses caused solely by increased sales volume are considered immaterial. Because inventory quantities remain fairly constant, the budget committee considered that for budget purposes any change in inventory valuation can
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