Best video Company is a manufacturer of vibeo-conferencing products. Regular units are manufactured to meet markoting projectons, and speclafised urits are made afler an order is received. Maintaining the video-conferencing equipment is an important area of customer safistaction. With the recent downtum in the computer industy, the video-conforencing equipment segment has suffered, leading to a docline in Best Video's financial performance. The folowing income statement shows results for this year. (Click the icon to view the income statement.) Best Video's management team is in the process of preparing the budget for next year and is studying the following information: (Click the icon to view the informabion.) Best Video Company Budgeted Income Statement for next year Best Video Company Income Statement For the Year Ended December 31, this year (in thousands) More info 1. Selling prices of equipment are expected to increase by 15% as the economic recovery begins. The selling pricet f each maintenance contract is expected to remain unchanged from this year. 2. Equipment sales in units are expected to increase by 8%, with a corresponding 8% growth in units of maintenance contracts. 3. Cost of each unit sold is expected to increase by 3% to pay for the necessary technology and quality improvements. 4. Marketing costs are expected to increase by 250,000, but administration costs are expected to remain at this year levels. 5. Distribution costs vary in proportion to the number of units of equipment sold. 6. Two maintenance technicians are to be hired at a total cost of 150,000, which covers wages and related travel costs. The objective is to improve customer service and shorten response time. 7. There is no beginning or ending inventory of equipment