2 Exercise 13-40 (Algo) Prepare Budgeted Financial Statements (LO 13-6) Cycle-1 is a fast-growing start-up firm that manufactures bicycles. The following income statement is available for October: 8 points Skipped Sales revenue (520 units @ $740 per unit) Less Manufacturing costs Variable costs Depreciation (fixed) Marketing and administrative costs Fixed costs (cash) Depreciation (fixed) eBook Total costs Operating profits $384,800 27,000 26,000 67,600 22,300 $142,900 $241,900 References Sales volume is expected to increase by 30 percent in November, but the sales price is expected to fall 10 percent. Variable manufacturing costs are expected to increase by 2 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.)