(15 pts) 6. JC Simmons is the budget director for Jackson Corp., a multinational company based in Georgia. Jackson Corp. organizes and coordinates art shows and auctions throughout the world. Budgeted and actual costs and expenses for 2020 are compared in the following schedule. 2020 Amounts Expense items Budget Actual Salaries expense, staging $500,000 $560,000 Salaries expense, executive 400,000 450,000 Travel costs 700,000 750,000 Auctioneer services 600,000 580,000 Space rental costs 250,000 240,000 Printing costs 200,000 190,000 Advertising expense 200,000 185,000 Insurance, merchandise 100,000 90,000 Insurance, liability 60,000 65,000 Home office costs 240,000 250,000 Shipping costs 100,000 115,000 Miscellaneous 50,000 45,000 Total expenses $3,400,000 $3.520,000 Net sales $6,000,000 $6,100,000 a. C. d. e. For 2021, the following fixed costs have been budgeted: executive salaries, $460,000; advertising expense, $250,000; merchandise insurance, $80,000; and liability insurance, $70,000. Additional information follows. Net sales are expected to be $6,200,000 in 2021. b. Salary expenses for staging will increase 20 percent over actual figures for 2020. Travel costs are expected to be 10 percent of net sales. Auctioneer services will be billed at 9 percent of net sales. Space rental costs will go up 20 percent from 2020 budgeted amounts. f. Printing costs are expected to be $220,000 in 2021. g. Shipping costs are expected to decrease 10 percent from 2020 budgeted amounts. h. Miscellaneous expenses for 2021 will be budgeted at $40.000. i. Home office costs are budgeted for $250,000 for 2021. Required: a) Prepare the company's budgeted income statement for 2021. b) Should the budget director be worried about the trend in the company's operations? Be specific