Cycle-1 is a fast-growing start-up firm that manufactures bicycles. The following income statement is available for October:

Sales volume is expected to increase by 20 percent in November, but the sales price is expected to fall 10 percent. Variable manufacturing costs are expected to increase by 4 percent per unit in November. In addition to these cost changes, variable manufacturing costs also will change with sales volume. Marketing and administrative cash costs are expected to increase by 8 percent. Cycle-1 operates on a cash basis and maintains no inventories. Depreciation is fixed and should remain unchanged over the next three years.
Required
Prepare a budgeted income statement for November.

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Sales revenue (300 units Less per unit180,000 $600 per unit)... $180,000 Manufacturing costs 26,000 Depreciation (fixed) . Marketing and administrative costs . Depreciation (fixed) . . $143,900 Operating prots. $98 100