Pro-Forma Income Statement and Balance Sheet Style Right Company makes hair dryers. During the past few days, its accountants have been preparing the master budget for the coming year, 2009. To date, they have gathered the following projected data:

Required:
1. Prepare a pro-forma income statement (contribution margin approach) and balance sheet for the coming year. Any income taxes owed on the coming year’s net income will be paid the following year.
2. By approximately how much would Style Right’s profits increase if another 3,000 units were produced and sold for $20 each?

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Sales revenue (at $20 per unit) $281,750 Variable selling expenses 17,250 Variable administrative expenses 40,250 Interest expense (not included in selling and administrative expenses) 1,725 Cost of goods sold (includes only variable costs) 103,500 Ending cash balance 30,475 Ending accounts receivable balance 47,150 Ending land balance Ending buildings balance Ending equipment balance 24,150 71,300 24,150 Ending accumulated depreciation-buildings balance 47,150 Ending accumulated depreciation-equipment balance 9,200 Ending direct materials inventory balance 16,100 Ending finished goods inventory balance 25,300 Ending accounts payable balance 6,900 Ending common stock balance 32,200 Retained earnings balance, January 1 64,050 Balance in paid-in capital in excess of par account 23,000 Fixed selling expenses 23,000 Fixed administrative expenses 28,750 Fixed manufacturing overhead 11,150 Income tax rate 35%