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$\frac{x}{?}$ Question $2$

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Question $6$

Selling prices of equipment are expected to increase by $10\%$ as the

economic recovery begins. The selling price of each maintenance

contract is expected to remain unchanged.

Equipment sales in units are expected to increase by $6\%,$ with a

corresponding $6\%$ growth in units of maintenance contracts.

Cost of each unit sold is expected to increase by $3\%$ to pay for the

necessary technology and quality improvements.

Marketing costs are expected to increase by $$250,000,$ but

administration costs are expected to remain at the same levels.

Distribution costs vary in proportion to the number of units of

equipment sold.

Two maintenance technicians are to be hired at a total cost of

$$120,000,$ which covers wages and related travel costs. The objective

is to improve customer service and shorten response time.

There is no beginning or ending inventory of equipment.

Income statement

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Great Presentation Company is a manufacturer of video$-$conferencing products. Regular units are manufactured to meet marketing projections, and specialized units

are made after an order is received. Maintaining the video$-$conferencing equipment is an important area of customer satisfaction. With the recent downturn in the

computer industry, the video$-$conferencing equipment segment has suffered, leading to a decline in Great Presentation's financial performance. The following income

statement shows results for the year:

View the income statement. View the additional information.

Required

Prepare a budgeted income statement for the year ending December $31.$

Additional information

x$/$y Question $3$

Question $5$

a ninntian $7$

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