Benson Corporation has three divisions, each operating as a responsibility center. To provide an incentive for divisional executive officers, the company gives divisional management a bonus equal to $18$ percent of the excess of actual net income over budgeted net income. The following is Atlantic Division$$s current year$$s performance. $($SEE IMAGE $1)$

Sales Revenue $$4,050,000$

Cost of goods sold $$2,420,000$

Gross Profit $$1,630,000$

Selling & Admin expenses $$710,000$

Net income $$920,000$

The president has just received next year$$s budget proposal from the vice president in charge of Atlantic Division. The proposal budgets a $5$ percent increase in sales revenue with an extensive explanation about stiff market competition. The president is puzzled. Atlantic has enjoyed revenue growth of around $10$ percent for each of the past five years. The president had consistently approved the division$$s budget proposals based on $5$ percent growth in the past. This time, the president wants to show that he is not a fool. $$I will impose a $15$ percent revenue increase to teach them a lesson!$$ the president says to himself smugly.

Assume that cost of goods sold and selling and administrative expenses remain stable in proportion to sales.

Required

a$.$ Prepare the budgeted income statement based on Atlantic Division$$s proposal of a $5$ percent increase. $($SEE IMAGE $2)$

b$-1.$ Prepare income statement with $10$ percent growth. $($SEE IMAGE $3)$

b$-2.$ If growth is actually $10$ percent as usual, how much bonus would Atlantic Division$$s executive officers receive if the president had approved the division$$s proposal? $($IMAGE $4)$

c$.$ Prepare the budgeted income statement based on the $15$ percent increase the president imposed. $($IMAGE $5)$

d$.$ If the actual results turn out to be a $10$ percent increase as usual, how much bonus would Atlantic Division$$s executive officers receive since the president imposed a $15$ percent increase? $($IMAGE $5)$IMAGE $1($Current Year's Performance$)$

IMAGE $2($Req A$)$

Prepare the budgeted income statement based on Atlantic Division's proposal of a $5$ percent increase.

IMAGE $3($Req B$1)$

Prepare an income statement with $10$ percent growth.

IMAGE $4($Req B$2)$

Req A

Req B$2$

Req $C$ and $D$

If growth is actually $10$ percent as usual, how much bonus would Atlantic Division's executive officers receive if the president

had approved the division's proposal?

Bonus

IMAGE $5($Req C and D$)$

c$.$ Prepare the budgeted income statement based on the $15$ percent increase the president imposed.

d$.$ If the actual results turn out to be a $10$ percent increase as usual, how much bonus would Atlantic Division's executive officers receive since the president imposed a $15$ percent increase?

PLEASE show ALL FORMULAS needed for this problem. Thank you in advance!