7.4 Artic Camping Gear’s currently sells 35,000 units at $73 per unit. Its expenses are as follows:

Management believes it can increase sales by 2,000 units for every $5 decrease in sales price. It also believes the additional sales will allow a decrease in direct material of $1 for each additional 2,000 units. Prepare a flexible budgeted income statement for 35,000-, 37,000-, and 39,000-unit sales.