Prepare Projected Statements Based on Past Data: Assume that the statements of Shoreline Products, Inc. (self-study problem no. 1) were based on sales for 4,000 units. Next year, the following changes are expected:

1. Sales will increase to 4,800 units with a 5 percent increase in selling price per unit.

2. No additional property or equipment will be required to meet increased demand.

3. Labor wage rates will increase by 10 percent, and materials costs will increase by 15 percent before considering the increased volume.

4. Production will increase 20 percent (from 4,000 to 4,800 units) to meet the added demand 5. Direct labor, direct materials, supplies, and indirect materials are variable costs. All other costs are fixed; that is, they do not change because of a change in production activity. (However, they may change because of price changes.)

6. Heat, light, power, and maintenance and repairs costs are expected to increase by 50 percent, regardless of volume. All other costs will remain unchanged.

Prepare a report showing the total costs to be incurred in manufacturing activity during the coming year. (Round numbers to nearest whole dollar.)