a new model and a predicted upturn in the economy are leading Cycle Fit's managers to predict improved performance in 2021 . The following income statement shows results for 2020. (Click the icon to view the income statement.) Cycle Fit's management team is preparing the 2021 budget and is studying the following information: (Click the icon to view the information.) Read the requirements. More info 1. Selling prices of bikes are expected to increase by 15% due to the introduction of the new model. The selling price of each maintenance contract is expected to remain unchanged from 2020 . 2. Bike sales in units are expected to increase by 4%, with a corresponding 4% growth in units of maintenance contracts 3. Cost of each unit sold is expected to increase by 3% to pay for the necessary 4. Marketing costs are expected to increase by $260,000 5. Distribution costs vary in proportion to the number of bikes sold. 6. One additional maintenance technician is to be hired at a total cost of $190,000, which covers wages and related travel costs. The objective is to improve customer service and shorten response time. 7. There are no anticipated changes to adminstration costs. 8. There is no beginning or ending inventory of equipment. a new model and a predicted upturn in the economy are leading Cycle Fit's managers to predict improved performance in 2021 . The following income statement shows results for 2020. (Click the icon to view the income statement.) Cycle Fit's management team is preparing the 2021 budget and is studying the following information: (Click the icon to view the information.) Read the requirements. More info 1. Selling prices of bikes are expected to increase by 15% due to the introduction of the new model. The selling price of each maintenance contract is expected to remain unchanged from 2020 . 2. Bike sales in units are expected to increase by 4%, with a corresponding 4% growth in units of maintenance contracts 3. Cost of each unit sold is expected to increase by 3% to pay for the necessary 4. Marketing costs are expected to increase by $260,000 5. Distribution costs vary in proportion to the number of bikes sold. 6. One additional maintenance technician is to be hired at a total cost of $190,000, which covers wages and related travel costs. The objective is to improve customer service and shorten response time. 7. There are no anticipated changes to adminstration costs. 8. There is no beginning or ending inventory of equipment
