Mackie Corporation is developing its budgets for $2025$ and, for the first time, will use the kaizen approach. The initial $2025$ income statement, based on static data from $2024$ is as follows:

Selling prices for $2025$ are expected to increase by $\backslash (15\backslash \%\backslash ),$ and sales volume in units will decrease by $\backslash (5\backslash \%\backslash ).$ The cost of goods sold as estimated by the kaizen approach will decline by $\backslash (4\backslash \%\backslash )$ per unit. Other than depreciation, all other operating costs are expected to decline by $\backslash (3\backslash \%\backslash ).$ The operating expenses other than depreciation are variable.

Required:

a$)$ Prepare a kaizen$-$based budgeted income statement for $2025.$

b$)$ Explain the intent for using kaizen budgeting.