Budgeted income statement The operating results in summarized form for a retail computer store for this year are Revenu Hardware sales Software sales Maintenance contracts Total revenue Costs and expense $120,000 800,000 480.000 $3200000 Cost of hardware sales Cost of software sales Marketing expenses Customer maintenance costs Administrative expenses Total costs and expemes Operating income $1.344.000 480.000 240.000 256,000 44.000 $2.75.000 $432,000 The computer store is in the process of formulating its operating budget for next year and has made the following assumptions: The selling prices of hardware are expected to increase 10 percent but there will be no selling price increases for software and maintenance contracts. Hardware unit sales are expected to increase 5 percent with a corresponding 5 percent growth in the number of maintenance contracts; growth in unit software sales is estimated at & percent. The cost of hardware and software is expected to increase 4 percent. Marketing expenses will be increased 5 percent in the coming year. Three technicians will be added to the customer maintenance operations in the coming year, increasing the customer maintenance costs by $48,000. Administrative costs will be held at the same level