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

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Accounting

Cycle-1 is a fast-growing start-up firm that manufactures bicycles. The following income statement is available for October:
Sales revenue (360 units @ $690 per unit) $ 248,400
Less
Manufacturing costs
Variable costs 24,000
Depreciation (fixed)27,600
Marketing and administrative costs
Fixed costs (cash)66,600
Depreciation (fixed)23,200
Total costs $ 141,400
Operating profits $ 107,000
Sales volume is expected to increase by 10 percent in November, but the sales price is expected to fall 5 percent. Variable manufacturing costs are expected to increase by 3 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 5 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. (Do not round intermediate calculations.)

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